Indiabulls Real Estate posts 76% drop in Q3 net profit at Rs 49 cr

Indiabulls Real Estate (IBREL) on Monday reported a 75.69 per cent decline in consolidated net profit at Rs 49.27 crore for the quarter ended December 2019, mainly due to higher expenses.

The company had reported a profit after tax (PAT) of Rs 202.4 crore in the corresponding quarter last fiscal, it said in a BSE filing.

Total income for the period under review increased marginally by 2.33 per cent to Rs 1317.7 crore as compared to Rs 1,287.59 crore in Q3 FY2019.

Total expenses of the company during the quarter increased 20 per cent to Rs 1201.28 crore from Rs 1,001.32 crore in the corresponding period last fiscal.

"Of the total expenses, Rs 79.88 crore mentioned in other expenses include an impairment of on account of recoverability of certain financial assets," it said.

During the quarter, the company sold its entire stake in Century, which indirectly owns Hanover Square property in London, and another subsidiary IPMT, UK, to Clivedale Overseas, an entiry owned by the promoter of IBREL for Rs 1836.93 crore or GBP 200 million.

IBREL also executed definitive transaction agreement with Blackstone Group to divest its 100 per cent stake in its subsidiary Maraina Infrstructure.

During the quarter, it also sold one of the commercial asset/development at Mumbai to Blackstone for a consideration of Rs 675 crore, it said.