HDIL’s total income for the quarter under review stood at Rs 160.84 crore from Rs 210.58 crore in the year-ago period, registering a decline of 23.62 per cent, the company said in a statement.
Attributing the drop in profits to the absence of one-time gains, HDIL vice-president finance and investor relations Hariprakash Pandey told PTI: “...(this is) because the revenue realisation for Q1 FY14 is mainly through sale of residential apartments, while sale of FSI (floor space index) contributed largely to the revenues of Q1 FY13.”
During the quarter, the company sold around 100 units across all residential projects. More than 550 sale agreements were registered during the period, a company release said.
“Due to the macroeconomic scenario and liquidity issues, very few transactions are taking place. Therefore, even we have decided to go slow sale of FSI. For the year, we will be focusing on launching new projects. The sales will be largely contributed from the sale of residential projects,” he said.
He further said: “The profits for the year will be lower compared to that of last year, mainly because the margins from sale of FSI is much higher, in upwards of 60 per cent, compared to 40-45 per cent from sale of apartments.”
For the year, sale from residential would contribute to nearly 80-85 per cent of the revenues, Pandey said.
The company plans to launch 2-3 projects of a total of around 6 million sq ft during the fiscal.
When asked about the loss of TDR (transfer of development rights) on account of termination of a slum rehabilitation contract with Mumbai International Airport Ltd (MIAL), Pandey said: “I cannot talk about this as the matter is sub-judice.
But after the MIAL incident, we have decided to shelve our TDR sale plans for sometime.”
HDIL has reduced its standalone debt by Rs.203.32 crore to Rs.2,940.01 crore. On consolidated basis, HDIL’s debt reduced by Rs 188.33 crore to Rs 3,830.10 crore.
“We have reduced our debt considerably by Rs 203.32 crore on a standalone basis and achieved a debt-equity ratio of 0.34. Going further, by the end of the fiscal, we plan to further reduce our debt to Rs 2,200 crore and up to Rs 3,400 crore on standalone and consolidated basis, respectively,” Pandey added.
HDIL said the company had issued 25,675 non-convertible debentures of Rs 10 lakh each aggregating to Rs 2,567.70 crore, of which non-convertible debentures aggregating to Rs 1,311.22 crore has been redeemed.