Indiabulls Housing reports 75% decline in Q1 sale bookings

Indiabulls Real Estate Ltd (IBREL) has reported a substantial decline of 75 per cent in its sale bookings for the first quarter of the current fiscal year, amounting to Rs 74 crore. This is a notable drop from the Rs 297 crore recorded in the same period of the previous year, as highlighted in their recent investor presentation.

The company's sales volume has also seen a significant reduction, plummeting to 82,000 square feet during the April-June period of this fiscal year, down from 3,33,000 square feet in the corresponding period of the preceding year.

Consolidated loss increased by 627.57 crore

In the financial aspect, IBREL has posted a consolidated net loss of Rs 679.34 crore for the first quarter, which is a considerable increase from the Rs 51.77 crore loss in the same period last year. This widening loss can be attributed to a provision for potential loss amounting to Rs 629 crore, classified as an exceptional item.

On the bright side, the total income of the company has shown growth, increasing to Rs 209 crore during April-June from Rs 164.19 crore in the corresponding period of the previous year.

The exceptional item in this quarter's financial report pertains to an impairment provision of Rs 629.07 crore, associated with the company's foreign subsidiary, Brenformexa Ltd. 

This measure has been taken as a prudent step, given the uncertainties regarding recoverability. As a result, a full provision has been incorporated in the financial records of Brenformexa Ltd.

Based in Mumbai, IBREL holds a prominent position in the real estate sector within India.

(With PTI inputs)