Mumbai: Driven by improved sales, Housing Development and Infrastructure (HDIL) posted a net profit of Rs 113.52 crore in the fourth quarter ended March 31 as against a loss of Rs 279.95 crore in the same period last fiscal. Total revenue for the January-March period increased 66.7 per cent to Rs 259.27 crore from Rs 155.53 crore in Q4 FY2012-13, the real estate firm said in a statement today.
"The company has reported a good set of numbers in the last quarter with a significant reduction in our debt position. We continue to focus on reducing debt and possession of our existing projects in the upcoming quarters as well," HDIL Vice-Chairman and Managing Director Sarang Wadhawan said. As it follows project completion method, HDIL expects the upcoming quarters to be equally promising, he said.
"With faster clearances of pending projects, rapid infrastructural development and increase in other economic activities, we expect the economy to accelerate further and end the woes that the sector is currently undergoing." HDIL Vice-President (Finance & Investor Relations) Hariprakash Pandey said, "Most of our projects which were stuck due to clearances have now come on stream and started generating revenues. We see the trend continuing and our sales numbers going upwards."
The realty player's efforts of reducing debt have also resulted in the interest cost reducing significantly, bringing the company back in black, he said. The company managed to reduce its consolidated debt from Rs 4,004 crore in FY13 to Rs 3,511 crore during the last fiscal (FY14).
On standalone basis, debt dropped by 22 per cent on year-on-year basis to Rs 2,441 crore. Consolidated net cash flow from operations has been positive, and stood at Rs 488.95 crore in Q4. "The developers, to whom we had sold floor space index (FSI), have started paying the dues. We realised as much as Rs 350 crore that were due since the last one year," Pandey said.
For the entire year (FY14), HDIL's net profit shot up 142 per cent to Rs 177.57 crore from Rs 73.33 crore in FY13. Revenue, however, fell to Rs 953.64 crore from 1,065.23 crore. Pandey said HDIL will continue to reduce debt by Rs 600- 700 crore every year. "We will continue to monetise our assets where we are either joint venture partners or where we have land parcels to reduce our debt. We sold stake in one land parcel in Delhi last year and we expect to sell stake in some more projects this year."
