Indiabulls Real Estate Ltd (IBREL) on August 14 reported a consolidated net loss of Rs 119.36 crore for the quarter ended June and announced it will sell commercial assets for up to Rs 4,800 crore to become debt free this fiscal year. It had posted a net profit of Rs 117.48 crore in the year-ago period.
Total income, however, rose to Rs 869.4 crore during April-June quarter of 2019-20 fiscal as against Rs 835 crore in the corresponding period of the previous year.
Despite higher income, the company posted a net loss as it had to pay an additional tax amount of Rs 98 crore along with interest thereon of Rs 67.50 crore, based on the order of the Settlement Commission.
The board also authorised the company to achieve zero net debt in this fiscal year through “strategic divestment of its stake(s) in commercial and leasing business asset(s) to any third party investor(s)/internationally renowned private equity player(s) at an expected equity valuation of around Rs 4,400 crore–4,800 crore and earlier approved divestment of London property for 200 million pounds”.
These steps will generate over Rs 6,000 crore, thereby reducing the net debt to zero in the current financial year, and leaving surplus cash for further growth of the company, the company said in a presentation.
On Hanover Square property in London, the company said that “in light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish, and the London asset divestment would release an enterprise value of £200 million (about Rs 17,000 crore).