Indiabulls Housing Finance Q2 net profit falls 32% to Rs 702 crore

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Indiabulls Housing Finance on Wednesday reported over 32 per cent decline in its consolidated net profit to Rs 702.18 crore in the second quarter ended September 30.

The company had posted a net profit of Rs 1,034.92 crore during the corresponding quarter of the previous financial year.

Its total income during the July-September 2019 period also came down to Rs 3,420.45 crore, from Rs 4,255.27 crore in the year-ago period, it said in a regulatory filing.

On a standalone basis, the firm's net profit was down at Rs 510.09 crore during the quarter from Rs 933.26 crore a year ago. Income fell to Rs 2,910.53 crore from Rs 3,881.80 crore.

The company said it has elected to exercise the option permitted under the Income Tax Act, as introduced by amendment through an Ordinance and, accordingly, the company has recognised provision for income tax for the quarter and half year ended September 30 and re-measured its deferred tax assets and liability basis the rate prescribed under the effective income tax rate.

Its board of directors also declared an interim dividend of Rs 7 per equity share, it said.

The company will issue non-convertible debentures along with warrants through qualified institutional placement of up to USD 1 billion, it said further.

The board also approved issuance of non-convertible debentures in one or more tranches by way of public issue and/or private placement of up to Rs 10,000 crore, it said.

"The Citizens Whistle Blower Forum has filed a public interest litigation before the Delhi High Court wherein certain allegations have been made against the Indiabulls group. The company has vehemently denied the frivolous allegations that have been made without basic research or inquiry. The company has also filed a perjury application wherein notice has been issued," the company said.

It said the management has concluded that the allegations made in the writ petition has no merit and no impact on the financial statements. The matter is sub-judice and pending with the Delhi High Court, it added.

Shares of Indiabulls Housing on Wednesday closed at Rs 219.25 on the BSE, down 2.79 per cent from the previous close.

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