Indiabulls Housing Finance Q2 Results declared! Check performance details of September quarter
Corporate governance issue of the Indiabulls Housing Finance got reflected in its September quarter results today as its YoY profit dipped 32 per cent.
Indiabulls Housing Finance Q2FY20 results: On account of problems in the corporate governance in the company that forced its promoters to exit, the real estate company has reported more than expected weak September quarter results. In the September quarter this year, Indiabulls Housing Finance has reported a 32 per cent YoY crash in its profit as its Q2FY20 Profit stands at Rs 6710 crore against Rs 1,044 crore profit in Q2FY19. Similarly, its Income in the September quarter is at Rs 3,420 crore against Rs 4,250 crore in Q2FY19 — a dip of near 19.5 per cent.
However, even after these weak results, the Indiabulls Housing Finance has announced Rs 7 per share dividend to its shareholders to keep the market sentiment in its favour and avoid heavy selloff at Dalal Street in the coming trade sessions. According to the stock market experts, this Rs 7 per share dividend is not going to help the real estate company till it addresses its corporate governance that has forced its promoters to exit from the company.
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Highlighting the reason for weak quarterly results of Indiabulls Housing Finance Prakash Pandey, MD & CEO at Plutus Advisors said, "This slide-in quarterly number of Indiabulls Housing Finance is expected to continue until and unless its issues related to the corporate governance is not resolved." Pandey said that due to this corporate governance, the company has lost a lot of promoters in recent times. On his suggestion to the stock market investors in regard to Indiabulls Housing Finance shares Pandey advised share market investors taking any position in the counter and those who hold this real estate shares should exit on the rise.
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