The stock of Mumbai-based real estate player HDIL crashed 51 per cent in the last one year, placing it among the top losers. The company had a weak nine months ending December 2011 mainly on account of poor sale of projects. For the above period, sales expanded 5.7 per cent over a year ago but profits dipped 25 per cent.

The company managed to generate revenue mainly from sale of floor space index (FSI) and transferable rights. While FSI sales kept pace, the realisation of money from debtors proved to be difficult. Debtors increased from Rs 330 crore in the first quarter to Rs 608 crore in the December quarter. This too has been impeding timely cash flows needed for large projects such as the Mumbai airport slum rehabilitation work.

The company's margins on earnings before interest, depreciation and taxes slid to 52 per cent in the December 2011 quarter from 68 per cent a year ago. This also suggests that pricing, whether in FSI sales or transferable development rights, was not robust in Mumbai.

HDIL's high debt-equity ratio too remains a cause for concern, although the company guided in January that it would reduce debt by 15-20 per cent by March 2012.

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