Emaar In­dia posts Rs 230.87 crore net loss in first half of FY19

HT Estates - - FRONT PAGE - Press Trust of In­dia let­[email protected]­dus­tan­times.com

NEW DELHI: Realty firm Emaar In­dia has re­ported a net loss of Rs 230.87 crore in the first six months of the cur­rent fis­cal on higher ex­penses on con­struc­tion, while its net debt stood at Rs 5,707 crore in Septem­ber-end this year. Its net loss stood at Rs 339.43 crore dur­ing April-Septem­ber pe­riod of last fis­cal, Emaar MGF Land Fri­day said in a reg­u­la­tory fil­ing on the BSE, where its debt in­stru­ments are listed. To­tal in­come rose to Rs 1,211.17 crore dur­ing the first half of 2018- 19 fis­cal from Rs 643.99 crore in the cor­re­spond­ing pe­riod of the pre­vi­ous year.

The com­pany said that the re­sults are not com­pa­ra­ble be­cause of adop­tion of new ac­count­ing stan­dards for rev­enue recog­ni­tion.

As per the reg­u­la­tory fil­ing, the com­pany’s debt stood at Rs 5,707 crore as on 30 Septem­ber 2018. Its debt-eq­uity ra­tio was mi­nus 1.85.

Emaar In­dia is part of Dubai’s realty ma­jor Emaar Prop­er­ties, which en­tered In­dia in 2005 in part­ner­ship with Delhi-based MGF­groupand­in­vest­edRs8,500 crore through joint ven­ture Emaar MGF Land.

How­ever, in April 2016, it de­cided to end this 11-year-old joint ven­ture (JV). In Jan­uary this year, the Na­tional Com­pany Law Tri­bunal (NCLT) ap­proved the pro­posed de­merger scheme of Emaar MGF Land that paved the way for two JV part­ners— Emaar Prop­er­ties and MGF De­vel­op­ment—to go sep­a­rate ways. The de­merger process got com­pleted in July 2018.

“Pur­suant to NCLT or­der dated 16th July, 2018 ap­prov­ing the scheme­ofde­merg­erofEMLL (Emaar MGF Land Ltd), with ef­fect from July 31, 2018, out of the face value of Rs 10,00,000 of non-con­vert­ible deben­tures (NCDs), face value equiv­a­lent to Rs 3,07,876 per NCD has been de­merged­toMGFDevel­op­ments Ltd. Hence, the face value of the NCDs with Emaar MGF Land Ltd stands re­duced to Rs 6,92,124 per NCDs,” the fil­ing said.

The cor­po­rate ac­tion in re­spect of the de­merger is pend­ing and is to be im­ple­mented with Na­tional Se­cu­ri­ties De­pos­i­tory Lim­ited (NSDL) and the stock ex­change, it added.

Post-de­merger, Emaar In­dia has about 4,500 acres of land bank across the coun­try.

In Au­gust, Emaar In­dia’s new CEO Prashant Gupta had said that it will com­plete all de­layed projects, com­pris­ing 10,000 units, by the end of next year and has se­cured fund as well as ramped up work­force for ex­e­cu­tion.

The­com­pa­nyneeded­aboutRs 800-1,000 crore to con­struct these units, he had said.

It is cur­rently de­vel­op­ing projects in Gur­gaon, Jaipur, Lucknow, Mohali and Chen­nai.

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