Housing Development & Infrastructure (HDIL), the Mumbai based real estate player has registered 66% jump in consolidated sales for the quarter ended June 2014 to Rs 249.87 crore. However the growth at operating profit moderated to 42% (to Rs 99.26 crore) as the operating profit margin contract by 660 bps to 39.7%. Though other income stood lower by 39% (to Rs 6.26 crore), the interest and depreciation cost stood lower by 17% (to Rs 24.58 crore) and 75%(to Rs 5.03 crore) respectively and thus the PBT more than doubled (up 151%) to Rs 75.91 crore. Taxation was higher by 37% (to Rs 19.21 crore) but the tax incidence was lower at 25.3% (compared to 46.3% in Q1FY14) and thus the PAT jumped by 249% to Rs 56.70 crore. After accounting for minority interest the net profit was up by 249% to Rs 56.69 crore.
- Sales were higher by 66% to Rs 249.87 crore on a weak base. Revenue for the quarter seems largely came from recognition of balance revenue from Residency Park Virar Phase I & Kurla project under project completion method. The company also divested 100% stake in HDIL Entertainment for Rs 105 crore during the quarter and received Rs 90 crore in Q1FY15 and balance to be received in Jul 2014. In comparison the revenue for corresponding previous period came from recognition of revenue from Residency Park Virar Phase I & Virar West projects.
- Given change in revenue/project mix the operating margin crashed by 660 bps to 39.7%. Thus the operating profit was up by 42% to Rs 99.26 crore.
Other developments
In Q1FY15 the company sold approx. 2,86,260 Sq.Ft of saleable area amounting to approx Rs 300 crore
Customer Advances & Collections during the Quarter Rs 448 crore as against Rs 221 crore in Q4FY14.
Cash & bank balance includes Rs 136 crore invested in Mutual Funds as on June 30, 2014.
Cash flow collection improved due to possession of Galaxy & Residency Park Virar projects.
Yearly performance
Sales were lower by 15% to Rs 872.26 crore. But as OPM crash by 3130 bps on change in revenue mix, the operating profit was lower by 56% to Rs 298.88 crore. Other income more than doubled (up 104% to Rs 81.38 crore) and thus the degrowth at PBIDT level moderated to 47% to Rs 380.26 crore. After accounting for higher interest cost and lower depreciation, the PBT was lower by 65% to Rs 189.06 crore.
EO Expense for the period was nil compared to a write-off of Rs 441.98 crore towards unrealized cost pertaining to MIAL rehabilitation project in the corresponding previous period. Thus gained by deflated base, the PBT after EO more than doubled (up 101%) to Rs 189.06 crore. Taxation was lower by 45% to Rs 11.37 crore and thus the PAT was higher by 142% to Rs 177.69 crore. After accounting for share of profit from associates and minority interest the net profit was higher by 142% to RS 177.57 crore.
Promoter share holding as end of Mar 2014 stood at 36.17% unchanged compared to sequential previous period ended Dec 2013 or corresponding previous period ended March 2013. The promoters share pledged (as percentage of total share capital of the company) stood at 34.73% and that is marginally lower compared to 34.77% as end of corresponding previous period.
The stock hovers around Rs 90.80.
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