Mahindra Lifespace Developers profit jumps to Rs 32.17 crore in Q2

New Delhi: Mahindra group's realty firm Mahindra Lifespace Developers Ltd on Thursday reported over five fold jump in consolidated net profit at Rs 32.17 crore for the quarter ended September 30, 2016 and will raise up to Rs 300 crore through rights issue.

Its net profit stood at Rs 6.11 crore in the year-ago period, the Mumbai-based developer Mahindra said in a regulatory filing.

Income from operations, however, fell to Rs 125.48 crore in the second quarter of this fiscal from Rs 138.91 crore in the corresponding period of the previous year.

The board has approved raising of funds by way of issue of equity shares to the existing shareholders of the company on a rights basis (Rights Issue) up to Rs 300 crore.

The committee of directors has been authorised to determine the terms and conditions of the Rights Issue including the rights entitlement ratio, the issue price, issue size, record date, timing of the issue and other matters which would be decided in consultation with the Lead Manager(s) to the Rights Issue.

"Residential sales and execution maintained an even tempo in Q2 FY17. This, supported by a significant improvement in industrial land leases, has resulted in a stronger profit performance by the company," company's MD & CEO Anita Arjundas said.

Mahindra Lifespace Developers is the real estate and infrastructure development business of the USD 17.8 billion Mahindra group.

The company has presence in nine cities -- Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai, Hyderabad and Bengaluru.

Its residential and commercial development footprint includes over 13.15 million sq ft of completed projects and 9.24 million sq ft of ongoing and forthcoming projects.