Indiabulls Real Estate Ltd's Q1FY19 consolidated net profit declines 5.3% yoy to Rs117.48cr

The company’s consolidated revenue stood at Rs810.85cr, up 38.47% yoy but down 73.29% qoq.

Aug 14, 2018 04:08 IST India Infoline Research Team

Indiabulls Real Estate Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 810.85 38.5
EBITDA 246.21 [23.4]
EBITDA Margin (%) 30.4 [2,451]
Net Profit (adjusted) 117.48 [5.3]
***EBITDA margin change is bps
Indiabulls Real Estate Ltd’s (IBReal) revenue for Q1FY19 from operations rose by 38.5% yoy to Rs810.85cr as against Rs555.04cr in Q1FY18. The company’s EBITDA margin contracted expanded by 2,451bps yoy to 30.4% as against 54.87% inQ1FY18. The EBITDA declined by 23.38% yoy to Rs246.21cr as against Rs321.33cr in the same period a year ago. The company’s PAT after tax slipped 5.3% to Rs117.48cr in the quarter.
  • Ind AS 115 'Revenue from Contracts with Customers', mandatory for reporting periods beginning on or after April 01, 2018, replaces existing revenue recognition requirements. The application of Ind AS 115 has impacted the company's accounting for recognition of revenue from real estate projects.
  • The company has applied  retrospective approach in adopting the new standard and accordingly restated the previous period numbers based on completion of contract for all the real estate projects across India. 
  • As a result, all the previous periods have been restated to reverse the accounting under Percentage of Completion Method (PoCM) for open contracts as of April 01, 2018. Accordingly the numbers have been restated in previous periods and cumulatively such restatement has impacted reserves as of March 31, 2018 by Rs2,118cr (net of taxes).
    The company is in advanced stages of completions in many projects, and most of the accounting reversals will show in P&L account as projects keep getting completed.
  • During the quarter, the IBReal purchased equity shares of two of its indirect subsidiaries for Rs89.21cr, thereby making them its direct wholly-owed subsidiaries.
  • Subsequent to the quarter end, IBReal has executed definitive transactions document to divest its 100% stake in tranches in one of its subsidiary, Indiabulls Infrastructure Limited ('IIL'), whose wholly owned subsidiary India Land and Properties Limited ('ILPL') holds commercial asset at Chennai at an enterprises value of ~Rs850cr subject to adjustments, if any, basis certain assets and liabilities on closing and subject to satisfaction of customary closing conditions. The transaction is likely to be completed by September 30, 2019. 

Technical View:

Indiabulls Real Estate Ltd ended at Rs. 150.05, up by 0.25 points or 0.17% from its previous closing of Rs. 149.80 on the BSE.
The scrip opened at Rs. 149.80 and touched a high and low of Rs. 154.50 and Rs. 147.25 respectively. A total of 68,36,820 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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