Eastern Housing’s Jul-Mar revenue grows 74%

Infographic: TBS

The apartment business has helped Eastern Housing, a concern of Islam Group, post a 74% year-on-year growth in revenue in the July-March period of the current fiscal year.

Its revenue stood at Tk253.80 crore, up from Tk145.45 crore a year ago.

The net profit stood at Tk36.71 crore and earnings per share at Tk3.93, which are 31% higher than the same period in the previous year.

However, one of the country's pioneers in the real estate sector is focusing more on land development than the apartment business. It is focused on constructing commercial buildings.

A top official at the company, seeking anonymity, told The Business Standard, "Eastern Housing had a commercial building project in Gulshan. A business group has bought the entire project at one go for around Tk100 crore. Usually, all the floors of such buildings are not sold altogether this way."

He added that the building was sold in November. And this revenue has been shown in the second quarter of the current accounting year.

He also said the recent construction material price hike has not had much of an impact on the company's business. Because their focus is less on the apartment. Land on the other hand has substantial growth.

This is reflected in the company's third-quarter report. In the January-March period, its land sales increased 25% to Tk56 crore, where it earned Tk6 crore from the apartment.

Meanwhile, the company has two ongoing housing projects for middle-income people.

Meanwhile, Dhiraj Malakar, managing director at Eastern Housing, said in the company's fiscal 2020-21 report, "Intending to provide affordable apartments for the middle-income group, we have commenced construction work of two projects. We expect that the company will earn Tk300 crore by selling these flats."

"Considering the current situation of real estate business, we strategically focus on more investments in the land projects. But we still have taken the new apartment projects with much caution to protect our investments," he added.

He said the company has made all-out efforts to get approval from the Rajdhani Unnayan Kartipakkha (Rajuk) for the second and third phases of the Jahurul Islam City at the capital's Aftabnagar.

"We are in the process of complying with the regulatory norms of the government concerning our Mayakanon Land Project at Amin Bazar, which is about 400 acres," added Dhiraj Malakar.

Riding on the positive earnings, Eastern Housing's share price increased 2.82% to close at Tk54.70 on the Dhaka Stock Exchange on Wednesday.