Peninsula Land , a prominent real estate developer, has reported a net loss of 182 crore rupees for the second quarter, marking a significant downturn from a profit of 87 crore rupees in the same period last year. The company's financial performance reflects challenges in the real estate sector and broader economic conditions.

Revenue and Profitability

The company's revenue saw a substantial decline, dropping to 372 crore rupees from 523 crore rupees year-over-year. This 28.9% decrease in revenue highlights the difficulties faced by the real estate sector during the quarter.

Operational Performance

Peninsula Land's operational efficiency also took a hit, as evidenced by the following key metrics:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell to 38 crore rupees from 119 crore rupees in the previous year.
• The EBITDA margin contracted significantly to 10.07% from 22.69%, indicating increased pressure on the company's operational profitability.

Financial Position

The company's balance sheet as of September 30 reveals:

Cash Flow and Liquidity

Peninsula Land's cash flow statement for the half-year ended September 30 shows:

• Net cash flows from operating activities: 79.60 crore rupees
• Net cash flows used in investing activities: (350.40) crore rupees
• Net cash flows used in financing activities: (66.40) crore rupees

The company ended the period with cash and cash equivalents of 101.70 crore rupees, down from 438.90 crore rupees at the beginning of the year.

Corporate Developments

During the quarter, Peninsula Land converted 77,27,000 0% Unsecured Compulsorily Convertible Debentures of face value 2 rupees each into an equivalent number of equity shares on April 16, at a conversion price of 44 rupees per share.

Legal Proceedings

The company is facing challenges related to its investment in Hem Infrastructure and Development Private Limited (HIPDPL), a joint venture entity. The National Company Law Tribunal (NCLT) has initiated a Corporate Insolvency Resolution Process (CIRP) against HIPDPL. Peninsula Land's aggregate financial exposure in HIPDPL stands at 961.50 crore rupees, comprising investments and loans.

Outlook

While Peninsula Land continues to navigate through a challenging real estate market, the company is actively pursuing legal and commercial remedies to safeguard its investments. The management remains focused on improving operational efficiency and resolving ongoing legal issues to stabilize its financial position in the coming quarters.

Peninsula Land Limited (PLL) has disclosed that its joint venture company, Hemil Developers Private Limited (HDPL), is facing a corporate insolvency resolution process (CIRP) initiated by the National Company Law Tribunal (NCLT) due to a loan default of ₹266.00 crore. This development comes as a significant challenge for the real estate company's joint venture operations.

Key Points

• NCLT Action: The NCLT Mumbai Bench Court V has passed an order initiating the CIRP against HDPL, a joint venture entity of Peninsula Land.
• Loan Default: The insolvency process was triggered by a petition filed by JM Financial Credit Solutions Ltd, a financial creditor, against HDPL for invoking a corporate guarantee given in respect of loans amounting to approximately ₹266.00 crores.
• Primary Borrower: The loans were originally advanced to Hem-Bhattad AOP, identified as the primary borrower.
• Parallel Proceedings: JM Financial Credit Solutions Ltd has already initiated parallel proceedings against the primary borrower and secured orders to attach property under the SARFAESI Act, 2002.

Company's Response

Peninsula Land has stated that it had already written off its investment in HDPL in previous financial statements. The company emphasized that this development is not expected to have any material impact on its financial position. However, PLL is currently assessing the situation to determine if there will be any financial impact on the realizable value of its investments.

Legal Recourse and Negotiations

• HDPL retains the right to appeal against the NCLT order.
• Simultaneously, the financial creditor is reportedly in discussions with the borrower for a structured negotiated settlement of the dues.

Disclosure and Compliance

Peninsula Land Limited, in compliance with SEBI regulations, has made this disclosure to the stock exchanges. The company has assured stakeholders that it will provide further updates on any financial impact once determined.

This situation highlights the ongoing challenges in the real estate sector, particularly concerning joint ventures and loan guarantees. Investors and stakeholders of Peninsula Land will be closely watching how this insolvency process unfolds and its potential implications on the company's future operations and financial health.