Keystone Realtors' Profits Plunge by 45%, But Growth Prospects Remain Bright

Keystone Realtors reported a significant 45% decline in net profit for the June quarter of FY25, reflecting higher expenses. Despite the dip, the company's total income grew, and new project launches hold promise. Chairman Boman Irani emphasized a strong pipeline and future growth potential.

Keystone Realtors on Monday reported a 45 per cent decline in consolidated net profit, dropping to Rs 25.82 crore for the June quarter of fiscal year 2025, primarily due to elevated expenses.

The real estate firm, known for its Rustomjee brand, had registered a net profit of Rs 46.97 crore in the same period last year.

However, total income saw an uptick, reaching Rs 437.20 crore from Rs 282.82 crore year-on-year. This quarter's surge in total expenses, including construction costs, amounted to Rs 398.16 crore, up from Rs 216.54 crore.

"After a robust performance in 2023-24, Rustomjee Group continued its impressive performance in April-June quarter of 2024-25, recording pre-sales of Rs 611 crore, reflecting a robust 22 per cent year-on-year growth,'' remarked Chairman and Managing Director Boman Irani.

Boman Irani highlighted the launch of two new projects with a gross development value (GDV) of Rs 2,017 crore, as well as the acquisition of another project estimated at Rs 984 crore.

The successful equity fundraise of Rs 800 crore through qualified institutional placement (QIP) is set to bolster the company's growth strategy, facilitating new project acquisitions and launches. The company's pipeline appears promising with ongoing and forthcoming projects aligning with its growth trajectory.

(With inputs from agencies.)