India bulls Real Estate is a small cap real state company that recorded a market cap of ₹3,595.10 Cr during Tuesday’s closing session. In terms of residential and commercial properties, India bulls Real Estate it was established in 2006 with a focus on building and developing residential, commercial, and SEZ projects in significant Indian metropolises. The stock closed today down 1.50 percent after the company released its Q4 and FY23 earnings. During Q4FY23, the company reported revenue from operations of ₹133 Cr down by 51% YoY from ₹273 Cr in Q4FY22. The company reported loss in EBITDA of ( ₹-330 Cr) during the quarter under review as against ₹12 Cr during the quarter under March 2022. The net loss of India bulls Real Estate widens to ₹376 Cr during the quarter under review as against a net loss of ₹61 Cr during the corresponding quarter of previous fiscal. The company recorded presales of ₹171 Cr during Q4FY23 and ₹958 Cr in FY23. The company reported gross collections of ₹273 Cr during Q4FY23 and ₹1,746 Cr in FY23. India bulls said its gross debt stood at ₹256 Cr compared to ₹1,310 in FY2022, at an average ROI of 12.3% with 0.1x debt to equity. Whereas cash & cash equivalents stood at ₹608 Cr;
And Net Cash Positive of ₹352 Cr Post Debt. Commenting
on near term vision and medium-term strategy, Sachi Shah executive director of India bulls Real Estate said “I’m sure everyone is wondering what next – while this most recent ruling delays us in eventually being part of a much larger group run by a promoter whose sole focus is real estate, in the interim India bulls Real Estate shall be run as an independently managed, professionally run company. Our debt levels are low and there is a 500+ strong team between Mumbai and Gurgaon that continue to manage the business and the projects. The last few years were difficult with Covid and with things in transition, but we have a renewed attention to execution and delivery. Project activity has picked-up in all our sites and there is a dedicated commitment to finishing and handing over sites at the earliest. We are looking to reach resolution on the many pending issues and are moving positively in the right direction towards this. The message is clear – as a company, we need to improve transparency, be more customer centric and pay attention to our quality. There has been a clear effort in our published financial accounts and investor deck to capture cost escalations in the projects and one-time write-off of doubtful receivables. My key focus area is business development and growth as we look to exit our existing near-completed projects with a proper handover to our customers.” Commenting on the upcoming project expansions and plans for next few quarters hold for IBREL, Sachi Shah said “While we continue to enjoy a healthy net surplus number from our ongoing and planned projects, the near-to-medium term results will be subdued due to a combination of no new launches in the recent past as well as Blu, Thane and Sky Forest depleting its inventory. We are looking to add new Mumbai, NCR and Bangalore development projects as we prepare to launch future phases in our existing pipeline in Thane, Wolli, and Alabang in MMR and Sonipat & Gurgaon in NCR. These will have a gross development value in excess of 4,700 Cr. Our team is finalizing plans and design for approvals to take these projects forward. Against the backdrop of strong industry growth, larger branded developers have disproportionately large growth opportunities. We are actively seeking joint venture/joint development or development fee projects that would enable us to benefit from deploying a capital-light model.” The shares of Indiabulls Real Estate closed today on the NSE at ₹65.95 apiece down by 1.49 % from the previous close of ₹66.95.