HDIL Q1 net down 85% to Rs 16.25 cr

Net profit of Mumbai-based real estate company HDIL fell 85% in the June quarter of current financial year

The company posted a net profit of Rs 16.25 crore in June quarter of FY 2014 as compared to Rs 105.38 crore in the corresponding quarter of previous financial year.

HDIL's income from operations fell 30% at Rs 138.41 crore in June quarter of FY 2014 as compared to Rs 198.18 crore in the in the corresponding quarter of previous financial year.

HDIL wrote off Rs 441.98 crore last quarter and posted a loss of Rs 279.9 crore in the March quarter of FY 2013 as Mumbai International Airport had scrapped the airport slum rehabilitation contract awarded to the company. HDIL filed a case against MIAL, Mumbai Metropolitan Region Development Authority (MMRDA) and others. The Bombay High Court is yet to decide the case.

The company management said it recognized more revenues from residential sales which carried less margins.

"Last year, majority of sales was coming from floor space index sales which carry high margins. This year, we have started recognising residential sales which has lower margins. Margins in FSI sales are in north of 60% and residential margins in Vasai and Virar (on Mumbai outskirts) are between 25-30%," said Hari Prakash Pandey, vice president, Finance at HDIL.

HDIL is planning to launch first phase of its housing project in Virar by October which will have a total area of four to five million sq ft and another project in Ghatkopar in mumbai after Monsoons, Pandey said.

The company has reduced debt by Rs 188 crore at the consolidated level which stood at Rs 3830.10 crore.

HDIL stock gained 2.30% to close at Rs 33.40 today.
Net profit of Mumbai-based real estate company HDIL fell 85% in the June quarter of current financial year

The company posted a net profit of Rs 16.25 crore in June quarter of FY 2014 as compared to Rs 105.38 crore in the corresponding quarter of previous financial year.

HDIL's income from operations fell 30% at Rs 138.41 crore in June quarter of FY 2014 as compared to Rs 198.18 crore in the in the corresponding quarter of previous financial year.

HDIL wrote off Rs 441.98 crore last quarter and posted a loss of Rs 279.9 crore in the March quarter of FY 2013 as Mumbai International Airport had scrapped the airport slum rehabilitation contract awarded to the company. HDIL filed a case against MIAL, Mumbai Metropolitan Region Development Authority (MMRDA) and others. The Bombay High Court is yet to decide the case.

The company management said it recognized more revenues from residential sales which carried less margins.

"Last year, majority of sales was coming from floor space index sales which carry high margins. This year, we have started recognising residential sales which has lower margins. Margins in FSI sales are in north of 60% and residential margins in Vasai and Virar (on Mumbai outskirts) are between 25-30%," said Hari Prakash Pandey, vice president, Finance at HDIL.

HDIL is planning to launch first phase of its housing project in Virar by October which will have a total area of four to five million sq ft and another project in Ghatkopar in mumbai after Monsoons, Pandey said.

The company has reduced debt by Rs 188 crore at the consolidated level which stood at Rs 3830.10 crore.

HDIL stock gained 2.30% to close at Rs 33.40 today.