HDIL: Profits Dropped By 31.09% In Q3FY13

Housing Development & Infrastructure (HDIL) reported disappointing December 2013 quarter results today. The topline of the company remained flat, while its bottomline witnessed a dip in this quarter on a YoY basis. The revenues hardly changed at Rs 423.17 crore in Q3FY13 (compared to Rs 425.65 crore in Q3FY12). 

The bottomline showed a big decline of 31.09% in the quarter ended December FY13 on a YoY basis. The Net profit declined to Rs 107.35 crore from Rs 155.79 crore. The bottomline was majorly impacted due to higher finance costs and tax expenses. Also, the delayed payments from the buyers added to the woes. Further, the higher raw material prices resulted in higher expenses (up by 18% YoY) to Rs 221.39 crore. 

On the operational front, HDIL currently has 22 ongoing projects, which include residential – 51.54%, commercial & retail – 6.34%, redevelopment – 5.57% and the remaining 36.55% is for TDR Mumbai International Airport Limited projects, aggregating to 10.33 crore square feet area. 

Under residential projects, HDIL has projects like Premium Residency Phase-I, Metropolis, Harmony, Galaxy, Premium Exotica Phase-I & II etc. Commercial & Retail construction projects comprise of Kurla Premium, HDIL Industrial Park etc. The new forthcoming projects of HDIL are Ekta Nagar, Daulat Nagar, Kochi etc. at Kandivali, Santacruz, and Kochi respectively.

Further, the company's net debt stood at Rs 3290.14 crore till December 31, 2012. While on a standalone basis, its debt reduced by Rs 202.5 crore to stand at Rs 3466.94 crore.

However, considering the company's poor financial performance and a large debt, we recommend the investors should not go for this counter.