• Upside in revenue for the quarter was largely due to higher revenue from rental business. While the segmental revenue of real estate development business was down by 4% to Rs 567.11 crore the segmental revenue of rental business was up by 31% to Rs 166.73 crore. The share of development business for the quarter declined to 77% from 82% in corresponding previous period. But that of rental increased to 23% from 18% in corresponding previous period.
  
• EBIT was down by 24% to Rs 174.04 crore and the downside was largely due to lower segment profit from both business. While segment revenue of RE development business was down by 30% to Rs 114.84 crore that of rental was down by 10% to Rs 59.20 crore. Segment margin of RE development was down by 760 bps to 20.3% and that of rental was down by whopping 1650 bps to 35.5%.
  
• Sharp expansion in OPM for the quarter seems largely on account of significant change in product mix as well as project contributing to the top-line. Cost of land plots as proportion to sales was lower by 2210 bps to 38.8%. But that of employee cost and other expenses was up by 40 bps (to 4.9%) and 100 bps (to 3.4%) respectively.

YTD Performance

Sales was higher by 14% to Rs 1798.40 crore. Higher sales together with 750 bps expansion in OPM facilitated 42% growth in operating profit to Rs 672.77 crore. However the growth at PBT moderated and stood at 3% (to Rs 389.50 crore) hurt by lower other income, higher interest and higher depreciation. Hit further by higher tax incidence the PAT was down by 3% to Rs 246.46 crore. After accounting for lower share of loss from associate, higher share of minority loss, higher OCI attributable to owners of parent company, the net profit (after minority interest and OCI) was up by 136% to Rs 309.62 crore.