Prozone Realty Reports Q2 Net Profit of Rs 341.92 Lakhs, Revenue Dips 5.5%

Prozone Realty Limited has announced its financial results for the quarter ended September 30, showcasing a significant improvement in profitability despite a slight dip in revenue.

Key Financial Highlights

Net Profit: The company reported a consolidated net profit of Rs 341.92 lakhs for the quarter, marking a substantial increase from Rs 39.41 lakhs in the same quarter last year.
Revenue: Consolidated revenue from operations stood at Rs 4,618.77 lakhs, down 5.5% from Rs 4,885.72 lakhs in the corresponding quarter of the previous year.

Operational Updates

Management Changes

The Ministry of Corporate Affairs rejected the company's application for re-appointment of its Deputy Managing Director under Section 196 of the Companies Act, 2013.
The rejected director ceased to hold the position and was redesignated as Non-Executive Director.
Prozone Realty is evaluating legal recourse and determining action for Rs 682.00 lakhs in remuneration and salary advances paid to the director from February 27, 2020 till the rejection order date.

Subsidiary Update

Hagwood Commercial Developers Private Limited, a subsidiary of Prozone Realty, continues to contest the cancellation of aviation clearance for its Nagpur residential project. The management believes the chances of revalidation are high based on recent court orders.

Financial Table

Metric	Q2 (Current Year)	Q2 (Previous Year)	Change
Net Profit (Rs Lakhs)	341.92	39.41	+767.6%
Revenue (Rs Lakhs)	4,618.77	4,885.72	-5.5%

The company has shown significant improvement in profitability amid revenue challenges, indicating a complex operating environment.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.01%	-8.34%	+2.13%	+74.50%	+173.74%	+140.27%

Prozone Realty Limited has received requests from four members of its promoter group seeking reclassification from the 'Promoter Group' category to the 'Public' category. This move could potentially alter the company's shareholding structure and governance dynamics.

Reclassification Requests

The requests were received from the following individuals and entities:

Rakesh Rawat Family Trust
Ghanshyam Rawat
Pushplata Rawat
Vandana Vaidh

Current Shareholding

Applicant	Shares Held	Percentage
Rakesh Rawat Family Trust	35,85,796	2.35%
Ghanshyam Rawat	0	0.00%
Pushplata Rawat	0	0.00%
Vandana Vaidh	1,620	0.00%

Key Points of the Requests

All applicants have stated that they have no influence over the company's business decisions.
They are not engaged in the management or day-to-day affairs of the company.
The applicants do not have any rights to appoint directors or control policy decisions.

Next Steps

Prozone Realty has confirmed that it will process these requests in compliance with Regulation 31A of the SEBI Listing Regulations. The company plans to:

Present the requests to the Board of Directors within two months for analysis.
Seek necessary approvals from regulatory authorities, including stock exchanges.

Regulatory Compliance

The applicants have provided assurances that they meet the conditions for reclassification as per SEBI regulations, including:

Not holding more than 10% of the total voting rights in the company
Not exercising control over the company's affairs
Not having special rights through formal or informal arrangements
Not being represented on the Board of Directors
Not acting as Key Managerial Personnel
Not being classified as 'willful defaulters' or fugitive economic offenders

Impact on Shareholding

If approved, this reclassification would move 35,87,416 shares (approximately 2.35% of the company's equity) from the 'Promoter Group' category to the 'Public' category.

The company will now follow the prescribed regulatory process for these reclassification requests. Shareholders and investors should monitor further announcements for updates on this corporate action.