Indiabulls Real Estate Ltd shares jumped almost 4% in intraday trade on Tuesday even as the company announced muted earnings for the third quarter ended December (Q3).
Indiabulls Real Estate said consolidated net profit dropped 75.7% to Rs 49.27 crore for the December quarter compared with profit after tax of Rs 202.4 crore in the year-ago quarter, mainly due to higher expenses.
Meanwhile, the company’s total income was up by a tepid 2.33% to Rs 1,317.7 crore compared with Rs 1,287.59 crore in the year-ago quarter.
Total expenses during the December quarter jumped 20% to Rs 1,201.28 crore compared with Rs 1,001.32 crore a year ago.
“Of the total expenses, Rs 79.88 crore mentioned in other expenses include an impairment of on account of recoverability of certain financial assets,” the company said in a statement.
Indiabulls Real Estate had sold its entire stake in Century and another subsidiary IPMT, UK, to Clivedale Overseas (an entity owned by Indiabulls Real Estate’s promoter) for 200 million pounds during the quarter.
The company added it also sold one of the commercial assets at Mumbai to Blackstone for a consideration of Rs 675 crore during the December quarter.
At 11:23 am, shares of Indiabulls Real Estate were trading at Rs 93.75, up 3.8%, after hitting the day’s high of Rs 94.25. The stock has jumped by a massive 42% in the last one year compared with an 11% increase in the benchmark Nifty 50 index.
Separately, the company also informed that the board of directors has in-principally approved the proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Embassy Property Developments Pvt. Ltd with Indiabulls Real Estate.
Embassy is in discussions with financial investors such as Blackstone Group Inc. and others to raise up to $200 million before the merger, which will bring significant cash to help the merged entity expand its business operations.
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