HDIL

HDIL posted a set of dismal numbers for Q4FY13 wherein it reported a consolidated net loss at Rs.280 crore. This was on account of two factors – firstly, lower revenues from operations which came in at Rs.140 crore, down 77% (YoY). Secondly, the company had to write off unrealised cost to the tune of Rs.442 crore pertaining to Mumbai International Airport Slum Rehabilitation (MIAL) project. The loss would have been much higher had it not been for the inventory write back of Rs.326 crore.

MIAL has stated that the company has not rehabilitated dwellers, missed the deadline of 2011, not provided homes to the slum dwellers and also not provided a clean title for the land and not provided cash deposit as a performance guarantee. HDIL has not accepted the legal notice and has decided to initiate legal action. Though whatever MIAL has alleged is true, HDIL says that lapses happened because the eligibility norms have not been amended accordingly – though the Maharashtra government came out with the notification on January 1 2012, trill date it has not yet issued the final notification. This means that the stock will for some months ahead go through a deadlock, like the way HCC did and only once the air on this gets cleared that the sun will shine once again for HDIL.

The company is sitting on a debt to the tune of around Rs.4000 crore. Its consolidated interest outgo for FY13 stood at Rs.693 crore and that was 68% of the total revenue earned for the year. The company hopes to reduce debt by monetizing its assets, which in the current market conditions will take time.