Housing Development & Infrastructure (HDIL), the Mumbai based real estate player has registered 11% fall in consolidated sales for the quarter ended September 2015 to Rs 236.72 crore. However the operating profit grew by 13% to Rs 76.21 crore as the operating profit margin expand by sharp 670 bps to 32.2%. Despite lower interest cost (down 19% to Rs 12.58 crore) and depreciation (down 57% to Rs 1.46 crore), the PBT was down by 23% (to Rs 68.12 crore) dragged down by lower other income, which was down by sharp 85% to Rs 5.95 crore. With taxation stand lower by 61% to Rs 10.35 crore, the fall at PAT moderated to about 7% to Rs 57.77 crore. Eventually the net profit (After minority interest) was down by 7% to Rs 57.79 crore.

• Sales for the quarter came from revenue recognition under project completion method from ‘Residency Park Virar Phase II' as well as TDR sales of approximately 5 lakh square feet. In comparison the revenue for the corresponding previous quarter came from recognition of income from possession of galaxy in Kurla, Harmony Oshiwara & Industrial Park Virar projects.
• Expansion in margin seems largely due to change in revenue/project mix. Cost of construction as % to sales was lower by 800 bps to 45.8%. Event though staff cost was up by 70 bps to 2.8%, other expenses was up by 90 bps to 3.5% and project specific interest was higher by 290 bps to 29.5% that could not offset the sharp fall in cost of construction. Thus spurred by higher margin the operating profit was up by 13% to Rs 76.21 crore.

Half yearly performance

Sales were lower by 2% but that together with 170 bps contraction in OPM to 30.7%, resulted in 7% fall in operating profit to Rs 154.54 crore. The PBT was lower by 16% to RS 138.19 crore hurt largely by lower other income (down 74% to Rs 11.75 crore) as interest cost and depreciation stood lower by 37% (to Rs 25.12 crore) and 61% (to Rs 2.98 crore) respectively. As taxation stand lower by 54% to RS 21.22 crore, the degrowth at PAT stood restricted at 2% to Rs 116.97 crore.

Lower revenue and operating margin is due to escalated based on account of receipt of one off income of Rs 90 crore towards part payment from sale of 100% stake in HDIL Entertainment for Rs 105 crore during Q1FY15.

Other developments

During the Quarter Company sold approx. 3,12,012 sq ft of saleable area amounting to approx. Rs 341.60 Cr increase of approx 3.27 % compared to quarter ending September 2014.

TDR prices range between Rs. 3500 to 5000 per sqft. The company expects TDR sales range of approx 400000 to 500000 sq ft every quarter.

Construction commenced in Berkley square Ghatkopar–Redevelopment work to be completed by March 2016.

Consolidated Net Debt as end of Sep 2015 stood at Rs 2970.41 crore and Cash & cash equivalents stood at Rs 219.83 crore.

The stock hovers around Rs 63.15.