Peninsula Land turns profitable in FY23, slashes debt

Peninsula Land turned in a net profit of Rs 56 crore in the March quarter, as against a loss of Rs 53 crore a year ago. For the full year, too, the company reported a net profit of Rs 101 crore, compared to a loss of Rs 108 crore a year ago.

Revenue in the March quarter rose 46 per cent on year to Rs 151 crore, while revenue for FY23 more than doubled to Rs 1,039 crore. The company recognised revenue for two residential projects in the year.

The company has reduced its debt to Rs 424 crore at the end of March, from a peak of Rs 2,373 crore at the end of March 2019. Its net worth also turned positive.

“With these turnaround results the company has begun a new phase backed by strong execution capabilities,” it said in a statement.

During the year the company reported pre-sales of Rs 600 crore with the launch of 6.24 lakh sq ft of residences.

The company, part of the Ashok Piramal Group, has been a debt defaulter in the past.

According to the company, it has debt servicing obligations of Rs 243.2 crore to banks and financial institutions within the next 12 months while the current liabilities are higher than its current assets.

“0ver the past few years, and in the current year the group has taken various initiatives to reduce debt and improve liquidity through efficiency in operations and sale of inventory,” it said. These initiatives included settlements, renegotiation of external debts and monetisation of non-core assets.

The company’s promoters infused equity of Rs 25.7 crore during the year and have committed to infuse further equity of around Rs 16 crore over the next 12 months.

It said that it has also tied up a long-term borrowing deal to settle an external debt of Rs 30 crore due by July 2023.

“The management is confident that the cash flows from operations and the aforementioned initiatives will be adequate to enable the group to meet its current liabilities as and when it falls due within the next 12 months.”