HDIL's consolidated profit zooms to Rs 65 cr in Dec quarter

We have achieved a satisfactory growth this quarter on account of good sales, says company's Vice Chairman and MD

Realty firm HDIL's consolidated net profit zoomed to Rs 65.29 crore for the quarter ended December 31, 2014 from Rs 5.10 crore in the comparable period.

The company today reported a four-fold a rise in total sales during the period under review to Rs 359.50 crore from Rs 89.63 crore in the corresponding period.

"We have achieved a satisfactory growth this quarter on account of good sales," HDIL Vice Chairman and Managing Director Sarang Wadhawan said.

HDIL Vice-President, Finance and Investor Relations, Hariprakash Pandey told PTI: "There was an overall slowdown in the sector in last two years mainly due to delays in approvals.

"But since the last few quarters approvals are improving and therefore project execution has started to pick up. As more and more projects reach completion stage, sales will start reflecting in our balance sheet as we follow project completion method."

The revenues were mainly driven by sales in its commercial projects in Kurla and Goregaon, he said.

"Our residential business, which will be our main focus area, is also witnessing good traction.... We expect to see similar improvement in sales in the next 3-4 quarters as most of the residential projects, which were stuck, will reach completion stage," he said.

When asked whether the company was planning to launch new projects on residential or commercial sides, he said: "Our focus will be on residential only. In Mumbai we have many projects which are yet to be completed. We will concentrate on completing those projects and clearing the inventory."

The company may launch the first phase of its affordable housing project 'Planet HDIL' in Virar in the next couple of months, he added.

During the quarter, the company reduced its debt by 136.17 crores and its net debt now stands at Rs 3,142.49 crore with debt to equity ratio of 0.31.