Eldeco Housing’s net income surges by 23.72 percent in Q4 FY23

16 May 2023 CW Team

Eldeco Housing's net consolidated total income for the fourth quarter of FY23 was Rs 419.9 million, up 23.72 percent from Rs 339.4 million for the same period the previous year.

In the three months that ended on March 31, 2023, Eldeco Housing & Industries' net consolidated profit fell by 2.62 percent. According to a BSE filing by the company, its profit after tax increased to Rs 149 million in Q4 FY23 from Rs 145.2 million in the prior year's similar quarter.

The company's net consolidated total income for the fourth quarter of FY23 increased by 23.72 percent to Rs 419.9 million from Rs 339.4 million in the same quarter of FY22.

Pankaj Bajaj, chairman and managing director of the company, stated, “Eldeco has not had a particularly great year in terms of fresh sales in FY23. The sales were down due to the absence of new launches. The land assembly and approval process took longer than anticipated. We expect these issues to be resolved in the first or second quarter of the current fiscal year. We plan to raise debt against existing and new projects this year. We feel that the time is right to invest at this stage of the real estate cycle.”

The final dividend for the fiscal year 2022-2023 has been recommended by the board of directors at a rate of 400%, or Rs 8 per equity share with a face value of Rs 2.

The board also approved the purchase of 18,061 equity shares, or 100% of Surya Season Foods (the firm is engaged in the real estate business), at a price of Rs 1,068.79 per share, converting it into a wholly owned subsidiary of the company. According to a BSE statement by the firm, Surya Season Foods has a net value of Rs. 1.92 crore as of March 31, 2022.

“The industry size, which had been flat for nearly 10 years, is looking set to double in the next three to four years. The underlying reasons for rising incomes, positive demographics, and rapid urbanisation remain intact. The customer, particularly in smaller towns, is also showing a certain insensitivity to interest rate movements, probably due to low mortgage levels overall,” said Bajaj.

Between April 2022 and March 2023, the business added 20.91 acres to its land bank. In Q4 FY23, the company reported collections of Rs 23.6 crore and sales bookings of Rs 248 million.