Bombay Dyeing & Manufacturing Company Ltd. reported lower revenue for its real estate business due to new accounting norms.
“The revenue in any real estate, as per the new accounting norms, can be achieved only after the company gets an occupation certificate and offering possession to the customers,” Chief Financial Officer Vishnu Peruvemba told BloombergQuint in a post-earnings interaction.
The company's revenue in the real estate business fell 94 percent year-on-year during the June quarter to Rs 11.77 crore, according to its exchange filing. The segment had contributed nearly 44 percent of the overall revenue in the previous financial year.
Peruvemba said the company could have booked Rs 265 crore revenue in the real-estate segment during the three months ended June, if it had followed the previous accounting norms.
Key Earnings Highlights (Q1, YoY):
- Revenue down 33 percent at Rs 397.5 crore.
- Net loss of Rs 93.7 crore versus net loss of Rs 32.7 crore.
- Ebitda down 89 percent at Rs 8.6 crore.
- Margin at 2.2 percent versus 13.4 percent.
Outlook
The textile-maker is targetting Rs 350 crore revenue in the current financial year and Rs 500 crore by the next. It's also hopeful to cross Rs 500 crore in the retail segment, he said. Meanwhile, the company's debt is now restructured and it is looking to prepay it ahead of time, Peruvemba said.
Shares of Bombay Dyeing fell for the fourth straight trading session, its longest losing streak in over a month. the stock fell as much as 2.2 percent to Rs 246 apiece.
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