Mahindra Lifespace Developers Limited today reported a 58 percent decline in its consolidated net profit at Rs 13.47 crore for the quarter ended September as sales were hit after the implementation of the new real estate law and the GST.
Its net profit stood at Rs 32.17 crore in the year-ago period, according to a regulatory filing.
Total income also fell to Rs 129.14 crore in the second quarter of the 2017-18 fiscal from Rs 144.8 crore in the corresponding period of the previous year.
Commenting on the result, the company's MD Anita Arjundas said, "The quarter has been impacted by the discontinuity created around marketing efforts due to lead time in RERA registrations and the impact on price in ongoing projects under GST transition."
Mahindra Lifespace is the real estate and infrastructure development business of the Mahindra Group.
In the residential business, Mahindra Lifespaces sold 200 units worth Rs 111 crore in the second quarter of the year.
"Over 55 percent of these units were in the Rs 75 lakh and below category with 36 percent being in the sub Rs 50 lakh segment. Having handed over 2,250 units to customers during the last fiscal, the company continued its execution momentum with the handover of 875 units across projects in H1 FY18," the company said in a statement.
During the quarter, the company said it entered into a strategic partnership with International Finance Corporation (IFC) for investments in its integrated cities and industrial clusters business with an investment commitment of up to USD 50 million by IFC.
Earlier this month, Mahindra Lifespace also announced the creation of a strategic platform with HDFC Capital Affordable Real Estate Fund – 1 (HDFC Capital) to expand its footprint of affordable housing under the Happinest brand.
The investment commitment by both partners, together, is Rs 500 crore.
"The company is currently awaiting approvals for 6 of its new residential projects in Mumbai, Pune, and Chennai and plans to launch the same upon receipt of the relevant approvals," Mahindra said.
In the integrated cities and industrial clusters business, the Mahindra World Cities at Chennai and Jaipur leased 10 acres to 4 new customers - 1 in Chennai and 3 in Jaipur.
The work has commenced at its industrial cluster in North Chennai while approvals are underway for its industrial cluster in Gujarat, both of which will be launched shortly.
Arjundas said the company has focused on building partnerships that would help fuel growth in a capital efficient manner and it continue to look for meaningful opportunities to scale up businesses.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
