NEW DELHI: Realty firm Emaar MGF Land has reported a net loss of Rs 724.1 crore during the last financial year on higher expenditure.
Its net loss in 2016-17 stood at Rs 754.36 crore, according to a regulatory filing.
Total income however increased 43 per cent to Rs 1,363.83 crore during 2017-18 from Rs 953.89 crore in the previous year.
Despite higher income, Emaar MGF incurred net loss as its total expenses rose to Rs 2,087.93 crore from Rs 1,708.25 crore in the preceding year.
Emaar MGF Land is a joint venture between Dubai-based Emaar Properties and India’s MGF Development.
Emaar Properties had entered India in 2005 with largest FDI in realty sector and invested about Rs 8,500 crore in the Indian real estate market through the JV.
However, in April 2016, Emaar Properties and MGF group decided to end their 11-year-old JV through demerger process.
The National Company Law Tribunal (NCLT) had in January this year approved the proposed demerger scheme of Emaar MGF Land, paving the way for the two joint venture partners to go separate ways.
“In order to lend greater focus on the operations of the company’s business/projects and for the purpose of developing the potential for further growth and expansion, the board of directors during 2016-17 decided to demerge some of the assets and liabilities of the company into a separate undertaking…,” Emaar MGF said in the filing to BSE where its debt instruments are listed.
The demerger scheme was approved by NCLT on January 8, 2018, it added.
However, Emaar MGF said the NCLT order had certain errors and hence the company filed a rectification application with the tribunal, which in February directed that the corrected copy of the order would be issued after incorporation of the corrections.
“The company is yet to receive the final corrected order from NCLT and the demerger shall become effective on filing of such final order with the Registrar of Companies, which date shall be the effective date of demerger,” the company said.
In the financial statement, Emaar MGF said the assets and liabilities as on March 31, 2018 expected to be demerged into a separate undertaking have been disclosed as assets and liabilities held for distribution.
Such assets and liabilities stood at Rs 3,751.85 crore and Rs 1,339.44 crore, respectively.
The Dubai-based firm had in April this year appointed Hadi Badri as managing director of its India business to drive growth.
Post-demerger announcement, Emaar India has been focusing on completing its existing projects and ramped up construction work at its various projects in Gurgaon, Jaipur, Lucknow, Mohali and Chennai.
Source: Press Trust of India