• Revenue for the quarter was lower by 9% to Rs 422.57 crore of which about 79% came from FSI sales largely at Subsidiary company Guruashish and balance 21% from TDR sales. It seems the downside in revenue was on account of lower TDR sales on year on year basis as well as absence of any revenue recognistion from residential projects. Since the company is following project completion method revenue recognition got shifted to next fiscal with delays.
• Crash in Operating margin to 37.2% (from 59.9% in Q3FY11 and 52.7% in Q2FY12) was largely on account of FSI transactions, where the company has recognised reveneu are of low margin compared to sequential previous quarter. The Guruashish FSI sales is done through various transactions over the last 8-9 months each carrying different margins. Similarly with no commensurate revenue from real estate busines for the expenses on it has excerted severe pressure on margin.
• Other income was higher by 51% to Rs 17.75 crore. The interest cost was lower by 4% to Rs 19.47 crore and depreciation was higher by 7% to Rs 21.55 crore. Thus the PBT was lower by 46% to Rs 133.84 crore. EO Expense for the quarter was nil compared to Rs 4.50 crore in the corresponding previous period. Thus the PBT after EO was lower by 45% to Rs 133.84 crore.
• Taxation for the quarter was a write back of Rs 21.95 crore compared to a provision of Rs 16.38 crore in absolute terms. Since the company has not considered the benefit of 80IB and provided surplus, which it has written back now. Spurred by tax write back the de-growth at PAT moderated to 32% to Rs 155.79 crore.
• Prior period tax was nil for the quarter as well as corresponding previous period. The minority interest was down bh 97% to Rs 1 lakh and share of profit from associate was nil for the quarter as well as corresponding previous period. Thus the net profit was down by 32% to Rs 155.80 crore.

Consolidated nine month performance

Standalone sales for the period was higher by 6% to Rs 1375.09 crore and the operating profit was lower by 20% to Rs 682.75 crore on the back of contraction in OPM to 49.7% from 65.4% in the corresponding previous period. Eventually the netprofit (after minority interest) was lower by 26% to Rs 493.75 crore.

Other developments

The company acquired 75% of the paidup capital of HC Infracity during the quarter ened Dec 2012. Thereby HC Infracity has become the subsidiary of the company.

The stock hovers around Rs 122.70.