HDIL net dips 66% to Rs 101cr

HDIL net dips 66% to Rs 101cr
The Economic Times, July 30, 2009, Page 4

Our Bureau MUMBAI

MUMBAI-BASED real estate company, Housing Development Infrastructure (HDIL) on Wednesday reported a 66% decline in its net profit at Rs 101.47 for the first quarter ended June 30, 2009. The company’s net profit for the same period in the last fiscal was Rs 317.94 crore. This is attributed to the slowdown that the real estate sector had been passing through since late 2008.

The company’s net profit however increased on a quarter-on-quarter basis from Rs 61.9 crore in last quarter to Rs 101.47 crore this quarter reflecting a revival in the sector. The total sales of the company stood at Rs 318.62 crore during the quarter compared to Rs 601.13 crore in the corresponding period last year. Sarang Wadhawan, managing director, HDIL said: “We expect to see significant positive changes over the next two quarters.” The real estate sector throughout the country had been going through a difficult period in the light of the slowdown.

The company also said it would issue securities worth $450 million and the EBITDA margins have improved by 9.39% compared to the fourth quarter last year. The company also declared that the debt equity ratio improved and stood at less than 0.5, post the qualified institutional placement (QIP). Earlier this month, the company had raised Rs 1,688.40 crore through QIP. The company’s stock fell by Rs 20.55 or 7.13% at Rs 267.85 on Wednesday.

On Monday, the company in an announcement to BSE informed that resignations of Dheeraj and Kapil Wadhawan, the former directors of the company, have been accepted. This was part of the company’s succession plans, the company officials maintain. Dheeraj and Kapil Wadhawan are also on the board of DHFL.