Mahindra Lifespace declines after weak Q4 outcome

Mahindra Lifespace Developers fell 2.51% to Rs 382 on BSE after consolidated net profit fell 62.93% to Rs 30.30 crore on 47.71% decline in income from operations to Rs 189.38 crore in Q4 March 2014 over Q4 March 2013.

The company made the announcement during trading hours today, 22 April 2014.

Meanwhile, the BSE Sensex fell 6.46 points, or 0.03%, to 22,758.37.

On BSE, 7,309 shares were traded in the counter, compared with an average volume of 1,853 shares in the past one quarter.

The stock hit a high of Rs 398.60 and a low of Rs 376.15 during the day. The stock hit a 52-week high of Rs 472 on 18 July 2013. The stock hit a 52-week low of Rs 327.20 on 11 September 2013.

The stock had outperformed the market over the past one month till 21 April 2014, rising 9.55% compared with the Sensex's 4.65% rise. The scrip had, however, underperformed the market in past one quarter, falling 1.85% as against Sensex's 7.12% rise.

The small-cap company has an equity capital of Rs 40.85 crore. Face value per share is Rs 10.

On a consolidated basis, net profit fell 28.82% to Rs 100.63 crore on 4.48% decline in income from operations to Rs 705.26 crore in the year ended March 2014 over the year ended March 2013.

Commenting on the performance, Anita Arjundas, Managing Director & CEO, Mahindra Lifespace Developers, said - "We have seen revenue growth of over 10% in the residential business backed by a continued focus on execution. However, on an overall basis the year was subdued as investment decisions by households and corporates were postponed and approval cycles lengthened. We have invested in the required land parcels and organisation to meet our growth objectives and will now focus on launching new projects which are in the pipeline across business segments."

Jayantt Manmadkar, Chief Financial Officer, Mahindra Lifespace Developers said, "The past year saw the completion of 6 phases across 3 projects and total handovers of around 450 units. Given the current economic environment, our efforts to ensure healthy cash flows across projects and maintain a net debt equity ratio of under 1 will continue."

Mahindra Lifespace Developers, the real estate and infrastructure development business of the Mahindra Group, is a leader in sustainable urban development, through the creation of residential and integrated large format developments across nine Indian cities - Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai, Hyderabad and Bangalore. The Company's residential & commercial development footprint includes 11.25 million sq ft of ongoing and forthcoming projects.

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