You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Indiabulls Real Estate Q3 PAT drops 76% to Rs 49 cr

Topics
Business Finance

Capital Market 

The real estate firm's consolidated net profit dropped 75.7% to Rs 49.20 crore in Q3 December 2019 (Q3 FY20) as against Rs 202.46 crore reported in Q3 December 2018 (Q3 FY19).

Net sales slipped 3.1% year-on-year (Y-o-Y) to Rs 1,232.26 crore in Q3 FY20. Profit before tax slumped 59% to Rs 116.42 crore Y-o-Y. Indiabulls Real Estate announced its Q3 figures post trading hours yesterday, 10 February 2020.

Current development portfolio -execution of ongoing & planned projects to generate a net surplus of Rs 11,074 crore. This excludes all projects & assets that will be sold in the current financial year.

The company's board has considered the proposal of reorganisation of the business of the company, and in-principally approved the proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Embassy Property Developments (Embassy) with IBREL (Merger). The Embassy is in discussions with financial investors such as The Blackstone Group and others to raise up to $200 million before the merger. This equity investment of $200 million will bring significant cash in the merged entity (i.e. IBREL + Embassy (hereinafter called 'Merged IBREL') for expanding its business operations.

The Merged IBREL will be the development arm for both commercial and residential assets. The development platform will benefit by continuously selling assets into REIT & generate predictable profits. Embassy Office Parks REIT (a joint venture between Embassy and Blackstone) is India's first listed real estate investment trust and has a market cap of over Rs 32,000 crore. A reorganization committee will examine and evaluate the options to implement the aforementioned merger proposal. The proposed Merger is aimed to be achieved through a cashless scheme of amalgamation.

Indiabulls Real Estate is engaged in the development of real estate projects and allied activities. The firm's operations include real estate project advisory, investment advisory, project marketing, maintenance of completed projects, engineering, industrial and technical consultancy, construction and development of real estate properties and other related and ancillary activities.

Shares of Indiabulls Real Estate rose 0.78% to Rs 91 on BSE. The stock traded in the range of Rs 92 to Rs 88.50.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 11 2020. 11:40 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU