Dec 2, 2008

Business - Parsvnath cuts mid, top-level staff salaries by up to 20%

NEW DELHI: Realty firm Parsvnath Developers Ltd has cut salaries of its employees in top and middle level management by up to 20 per cent amid
slowdown in the real estate sector.

However, Parsvnath would not lay off under-performers as announced by the company in late October.

"We have decided not to lay off any of our employees. Instead, salaries at top and middle level management have been reduced by up to 20 per cent," a company spokesperson said.

Company's Chairman Pradeep Jain had said on October 24 that "non-performer has to go away". He had said that the company would initiate cost-cutting measures after Diwali.

The company currently employs 1,400 people and about 30,000 people are indirectly employed.

Jain had said that sales had declined significantly during this Diwali compared to last year.

Parsvnath's consolidated net profit declined at Rs 21.90 crore for the second quarter ended September 30, compared to Rs 102.77 crore in the year-ago period. Total income fell to Rs 226.35 crore from Rs 412.70 in the review period.