Tag Archives: HDIL

Stamp duty hike report in Maharashtra for the Real Estate Sector.

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Shares of real estate companies with significant exposure in Mumbai slumped in a weak market today after media reports surfaced that the Maharashtra government proposes to hike stamp duty for properties.

Shares of realty players like India Bulls, Oberoi and HDIL today slumped as much as 6 per cent after reports that the state government is planning to hike stamp duty by as much as 160 times.

India bulls Real Estate slumped 4.53 per cent to a low of Rs 65.25, Oberoi Realty tanked 2.32 per cent over its previous close to Rs 250 and Housing Development and Infrastructure Ltd was down by 6.64 per cent to Rs 89.15 on the BSE.

If the hike comes into effect, it will increase prices of both residential and commercial leave-and-licence properties, by a huge margin, market analysts said, adding that it will affect the already-sluggish Mumbai real estate demand.

“This news is going to be negative and stock prices of realty companies who have exposure in Mumbai took a hit. The cost of property in Mumbai will move up it will worsen the situation as there are already very few takers at the present interest rate regime,” Ashika Stock Brokers Research Head Paras Bothra said.

Moreover, weakness in the broader market also battered these stocks to some extent, market analysts said. The 30- share benchmark index Sensex was trading at 17,113.62, down 248.12 points at 1321 hours.

According to media reports, Maharashtra government proposed to hike stamp duty on leave-licence to 0.1 per cent on market value or 1 per cent of the average annual rent or deposit paid, whichever is higher, for residential properties.

For commercial properties, the duty for lease agreements over 60 months is 0.4 per cent.

This is a whopping hike from the previous fixed amount of Rs 25,000 for residential and Rs 50,000 for commercial properties for 60 months.

HDIL to offer Rs 350 cr as income

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Housing Development and Infrastructure Ltd stated that it had agreed to offer about three hundred fifty crore rupees as income to be booked in the remaining quarters of this financial year to the Income Tax Department. This follows an Income tax raid on HDIL office premises and promoters’ residences. HDIL said that the income calculated by Income Tax Department was based on initial entries in its books of accounts mostly relating to current fiscal year, which the company would have irrespectively booked during the current financial year on completion of transaction and taxes paid. HDIL said that there was no hidden income, tax evasion, levy of penalty for previous or current year.

HDIL’s first quarter result shows recovery

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The first quarter results of real estate major HDIL indicate a improvement in the domestic realty sector. Not only volumes, but also prices are now moving northward.
Despite the fact that both sales as well as profit margins fell during the June quarter, the decline was less than expected and pace is also slackening. Revenues fell by 47% year-on-year to Rs 318.61 crore from Rs 601 crore in the same quarter previous year. With more than three-fourth of its revenue coming from low yielding land development and slum rehabilitation scheme projects, the margins have taken a major hit. Operating margin also fell from 58% to about 43%. Net profit stood at Rs 107.47 crore as against Rs 317.9 crore reported in the corresponding quarter of last year.
In this quarter, HDIL sold less than 1.8 million square feet of TDR at an average price of Rs 1,500 per square feet. It is expected to cumulatively sell close to 6-7-million square feet of TDR in financial year 2010. HDIL has managed to restructure major part of its debt liability and repayments would be due only by October 2010. On account of completion of the mall and multiplex at Kandivili, a Mumbai suburb, about Rs 21 crore worth of investments have been transferred to fixed assets from the Profit & Loss account in the current quarter. As the company follows the project completion method for revenue recognition, it is only by 2011 when the ongoing residential projects would get completed. On the airport project, phase I is expected to be complete by fiscal year 2010 and land acquisition for other parts of project is going on. Recently the company has entered into a rental-housing scheme with MMRDA. This is expected to add 30 million square feet of space to its existing 196-million square feet of land bank.