HDIL Reports Q4 Loss Amid Ongoing Insolvency Resolution Process
Housing Development and Infra (HDIL), undergoing Corporate Insolvency Resolution Process, reported a net loss of ₹259.69 lakh in Q4, down from a profit in Q3. Annual net sales increased by 1559% to ₹3,395.61 lakh, while net loss reduced by 99.89% to ₹1.13 lakh. The company maintains a negative net worth. Resolution plans for 6 verticals have been approved, with NCLT approving plans for 2 verticals. Auditors issued a disclaimer of opinion due to ongoing insolvency proceedings and compliance issues.
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Housing Development and Infra (HDIL), a company currently undergoing Corporate Insolvency Resolution Process (CIRP), has reported its financial results for the quarter and year ended March 31, revealing a mixed financial performance.
Q4 Performance
HDIL reported a net loss of ₹259.69 lakh in the fourth quarter, a significant decline from the ₹659.81 lakh profit recorded in the previous quarter. The company's net sales dropped dramatically to ₹40.62 lakh from ₹1,440.64 lakh in Q3, indicating a severe contraction in business activities.
Annual Performance
Despite the quarterly setback, HDIL showed some signs of improvement on an annual basis:
| Particulars | FY2025 | FY2024 | Change |
|---|---|---|---|
| Net Sales | 3,395.61 | 204.59 | +1559% |
| Net Loss | 1.13 | 1,031.65 | -99.89% |
The company's net sales for the full year rose significantly to ₹3,395.61 lakh from ₹204.59 lakh in the previous year, marking a substantial increase of over 1500%. Simultaneously, HDIL managed to reduce its annual net loss to ₹1.13 lakh from ₹1,031.65 lakh in the previous year, representing a 99.89% reduction in losses.
Financial Position
HDIL continues to face financial challenges, maintaining a negative net worth with total liabilities of ₹6,24,249.88 lakh against total assets of ₹3,94,756.39 lakh as of March 31.
Ongoing CIRP and Resolution Plans
The company has been under Corporate Insolvency Resolution Process since August 20, 2019, with Resolution Professional Mr. Abhay Narayan Manudhane managing its affairs. Significant progress has been made in the resolution process:
- Resolution plans have been approved for 6 verticals of the company.
- The National Company Law Tribunal (NCLT) has approved plans for 2 verticals.
- On June 27, NCLT approved resolution plans for Vertical V - BKC Inspire and Vertical IX - Shahad Maharal land.
- Appeals against the NCLT order have been filed by erstwhile promoters and others before the National Company Law Appellate Tribunal (NCLAT), New Delhi.
Audit Observations
The auditors have issued a disclaimer of opinion, citing insufficient evidence due to ongoing insolvency proceedings and various compliance issues. Key points from the audit report include:
- Inability to prepare consolidated financial statements due to non-availability of audited financial statements of subsidiaries and associates.
- Challenges in reconciling opening balances and assessing impairment of assets.
- Non-compliance with certain Indian Accounting Standards due to lack of information.
- Ongoing investigations by authorities such as ED, EOW, SFIO, and CBI.
Conclusion
While HDIL has shown some improvement in its annual performance, the company continues to face significant challenges amidst its ongoing insolvency resolution process. The approval of resolution plans for some verticals marks a step forward, but the company's future remains uncertain as it navigates through legal and financial hurdles.
Historical Stock Returns for Housing Development and Infra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.72% | -0.38% | -3.65% | -17.24% | -37.29% | -54.48% |
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