Mumbai-based property developer Indiabulls Real Estate (IBREL) second-quarter group profit fell 77 per cent as it continued to invest in its power business and real estate business.The company posted a net profit of Rs 7.9 crore for the quarter ended September 30, 2008, compared with Rs 34.15 crore y-o-y.
In the second quarter, Indiabulls Power Services (IPSL), a subsidiary of IBREL, signed pacts with the Madhya Pradesh and Jharkhand governments to set up 2,640 MW and 1,320 MW power plants in the respective states.
IBREL is developing two commercial projects — Indiabulls One Centre and Elphinstone Mills Project in Lower Parel — among others. The lease rentals from Indiabulls One Centre are expected to flow from November. “Cash flows are yet to begin from lease rentals. Profit is not the sole criteria. One should look at how much cash a company has,” said Gagan Banga, spokesperson for Indiabulls group.
However, the company’s total income jumped 222 per cent to Rs 81.56 crore for the quarter ended September 30, 2008, compared with Rs 25.27 crore in the year ago period.
Segment-wise, though the company has booked profits of Rs 9.49 crore from the real estate business in Q2 of FY09 from a loss of Rs 1.69 crore it posted in second quarter of FY08. In the power business, however, the company took a hit posting losses of Rs 6.77 crore for the quarter ended September 30, 2008, as against a loss of Rs 18.44 lakh y-o-y.
