Mahindra Lifespaces Q1 net dips to Rs 14 cr on regulatory changes

Realty player Mahindra Lifespaces on Tuesday reported a 49.33 per cent decline in net profit for the quarter ended June 30 at Rs 13.8 crore.

The company had reported a net profit of Rs 17.5 crore in the corresponding quarter last fiscal.

Its total income increased to Rs 148.7 crore from Rs 115.7 crore during April-June FY2016-17, registering a growth of 28.52 per cent.

"Deep rooted regulatory changes have dominated the first quarter of this fiscal. While the effect of such changes will have a near term impact on the industry, we believe that in the medium to long term, such changes will reflect positively on the opportunities available to us to grow business across segments," company's Managing Director Anita Arjundas said in a statement issued here.

During the quarter, the company successfully completed its rights issue and raised Rs 300 crore, it said.

In the residential business, Mahindra Lifespaces sold 255 units worth Rs 138 crores in the first quarter of the year. Over 60 per cent of these units were in the Rs 50 Lacs and below category.

"We are currently awaiting approvals for six of our new projects and plan to launch the same upon receipt of the relevant approvals," she said.

In the integrated cities and industrial clusters business, the Mahindra World Cities at Chennai and Jaipur leased 10 acres to two new customers.

"Significant progress has been made on the approvals for the new industrial cluster in north Chennai project, work on which will commence in the second quarter of the year. The company has also initiated the approval process for its second industrial cluster in Gujarat after completing the acquisition of land in Q4FY17," it added.