New Delhi, May 15 () Realty firm Mahindra Lifespace Developers Ltd reported a consolidated net loss of Rs 223.9 crore for the quarter ended March due to lower income and provisioning of loss in a joint venture project in Delhi-NCR.
The company had posted a net profit of Rs 31.27 crore in the year-ago period, according to a regulatory filing.
Mahindra Lifespace, the real estate arm of the Mahindra group, posted a total income of Rs 110.78 crore in the fourth quarter of 2019-20 as against Rs 246.88 crore in the corresponding period of previous year.
For fiscal year 2019-20, the company posted a net loss of Rs 193.41 crore as against a net profit of Rs 119.71 crore in the previous year.
Total income fell marginally to Rs 645.92 crore in FY20 from Rs 653.87 crore in 2018-19.
The company said it has provided for impairment of its equity value in Mahindra Homes Pvt Ltd (MHPL), a joint venture (JV) firm.
MHPL is executing residential projects in National Capital Region (NCR) and Bengaluru.
"The residential project in NCR is a joint development with the landowner. The project saw a successful launch in 2015 in a buoyant market.
"The market has thereafter seen muted demand and declining prices. During the year, the company also saw significant cancellations of earlier bookings," Mahindra Lifespace said in a statement.
Consequently, MHPL has valued its balance inventory as per its accounting policies.
Similarly, Mahindra Lifespace has in turn, based on estimated net present value of forecasted cash flows, provided for impairment of its equity value in the JV firm.
"On a consolidated basis, the impact of impairment is Rs 135 crore, in addition to an impact of Rs 64 crore as share of loss from MHPL JV. This has been done as a matter of prudence considering uncertain market conditions," Mahindra Lifespace said.
Sangeeta Prasad, Managing Director & Chief Executive Officer, Mahindra Lifespace Developers said, "We are happy with the robust sales in our affordable housing project in Kalyan and the industrial customer acquisition in Chennai and Jaipur in Q4F20."
"We had planned a couple of launches in March-20 but did not go ahead because of the COVID-19 conditions. Being abundantly cautious, we have made a one-time provision in our financials for our project in NCR which was launched in 2015," she added. MJH RVK
Next Story
Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
Axis Bank posts net profit of ₹7,129 cr in March quarter
7 Best tourist places to visit in Rishikesh in 2024
From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
7 Things to do on your next trip to Rishikesh
