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

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.

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First Published: Tue, February 11 2020. 11:40 IST