Indiabulls Real Estate Q1 Results: Net loss to Rs 679.5 crore, 29.2% YoY rise in revenue at Rs 195.8 crore

Indiabulls Real Estate reported a loss of Rs 679.5 crore in the June quarter. Due to an exceptional item of Rs 629 crore, the loss appeared to have increased from Rs 52 crore reported in the previous quarter.

According to the company in an investor presentation, this sum was added to the quarterly financials to represent the amount due from Clivedale Overseas Limited, a UK-based corporation controlled by the former promoters of Indiabulls Real Estate. 

Since December 2021, the company has reported successive losses with the exception of Q2FY23.

Indiabulls Real Estate reported a 29.2% YoY increase in revenue to Rs 195.8 crore in Q1FY24.

The company stated in a separate filing that the state-owned industrial promotion agency MIDC issued a notice seeking the termination of the lease deed for 2,500 acres of property it had provided in Sinnar (Nashik).

The failure to compensate project-affected individuals (PAP) within the specified timeframe resulted in the issuance of the termination notice. The company stated that the agency's action was unlawful since it had paid a plot fee toward the PAPs.

The company also said that it has appealed the National Company Law Appellate Tribunal (NCLAT) after the National Company Law Tribunal's (NCLT) Chandigarh bench's order to withhold its merger with Embassy Group, its new parent company, in May.

Samir Gehlaut, the company's former promoter, left the company in 2021 and sold his stake to the Embassy group of Bengaluru.

In India, Indiabulls Real Estate constructs and develops properties for residential use, commercial use, and special economic zones. The company will continue to concentrate on the Mumbai, Bengaluru, and Delhi NCR areas after being acquired by the Embassy group in 2021.

Source: Media Reports