Real estate developer Emaar MGF today said it has posted a net loss of Rs 205.94 crore for the year ended March 31,2011,mainly on account of selling its hospitality project in Kolkata at discount. The company had posted a net profit of Rs 73.81 crore in the previous financial year,Emaar MGF said in a filing to the Bombay Stock Exchange (BSE). The total income of the firm also declined by 1.25 per cent to Rs 1,053.70 crore in 2010-11 from Rs 1,067.07 crore in 2009-10,it added. In the fiscal,the company repaid about Rs 960 crore of debt. Its total debt stands at Rs 4,540 crore as on March 31. The company,which is a joint venture between Dubai's Emaar Properties and India's MGF Development,had filed Draft Red Herring Prospectus (DRHP) for the third time with market regulator Sebi in the last year. Although Emaar MGF has not come out with its planned IPO yet,the company has informed Sebi about its financial results as part regulations relating to public offer. When contacted,company officials declined to comment on the financial performance. During the last fiscal,the expenditure of the company soared by 23.87 per cent to Rs 1,002.15 crore from Rs 809.01 crore in the year-ago period,the filing said. The company said its raw materials cost went up by 17.24 per cent to Rs 633.77 crore from Rs 540.58 crore in 2010-11,it added. The other expenditures of the company also rose by over two-fold to Rs 255.76 crore in FY'11 from Rs 107.43 crore in FY'10,Emaar MGF said. "Other expenditure includes loss of Rs 111 crore on sale of investment by the company," it said. Sources. however,said the loss on sale of investment was due to the company exiting its hospitality project in Kolkata at an undervaluation as it was "in need of liquidity". Besides,the interest outgo also increased by 80.27 per cent to Rs 268.17 crore from Rs 148.76 crore in the previous fiscal,the statement said. In September,2010,Emaar MGF had for the third time filed revised application with market regulator Sebi to raise Rs 1,600 crore through a public offer. The company had first hit the capital market to raise over Rs 7,000 crore through an IPO in 2008,but withdrew it due to poor market response. Later on September 29,2009,Emaar MGF had filed its DRHP for the second time to raise Rs 3,850 crore through an IPO. In March last year,it even got the approval from Sebi to launch the public offer,but never came out with one.
