HDIL tanks as co reports net loss of Rs 262 cr in Q4; MIAL sends notice

MUMBAI: Shares of Housing Development & Infrastructure Limited plunged in trade today after the company reported a net loss for quarter ended March 2013. The stock also took a hit after receiving a termination notice from Mumbai International Airport Limited (MIAL) for its slum rehabilitation project.

It reported a standalone net loss of Rs 262.27 crore for the quarter ended March 31, 2013 as compared to a net profit of Rs 96.69 crore in the corresponding quarter last fiscal.

Total income decreased to Rs 176.43 crore for the quarter as against Rs 208.82 crore in year-ago period.

On consolidated basis, the group posted a net loss of Rs 279.95 crore for the March 2013 quarter as compared to a net profit of Rs 315.52 crore in the same period last fiscal. Total income decreased to Rs 155.54 crore from Rs 649.31 crore.

The company in 2007 had won the bid to carry out the rehabilitation work on 276 acres of Mumbai airport land encroached by slum dwellers. The deadline for clearing the land was October 2010 but the company failed to do so.

In October 2012, MIAL sought to encash the bank guarantee for breach of various conditions including not evicting any of the 28,000 slumdwellers.

HDIL has not accepted the notice and has initiated legal remedies available to it, it said in a statement.

The stock ended at Rs 47.95, down 6.80 per cent, on the BSE. It touched a high of Rs 52.15 and a low of Rs 46.15 in trade today.