Parsvnath Developers has reported net consolidated loss after tax of Rs 99.40 crore during the quarter ended September 30, 2022. It had recorded loss after tax of Rs 76.19 crore in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated income stood at Rs 44.76 crore in Q2 FY23, a dip of 3.60 per cent from Rs 46.43 crore it recorded in the similar quarter last year.
In the regulatory filing, the company said it has incurred cash losses during the current and previous years. Due to continued recession in the real estate sector owing to the slow down in demand, the company is facing tight liquidity situation as result of which there have been delays/defaults in payment of principal and interest on borrowings, statutory liabilities, salaries to employees and other dues.
Also, the company continues to face lack of adequate sources of finance to fund execution and completion of its ongoing projects resulting in delayed realisation from its customers and lower availability of funds to discharge its liabilities.
The company is continuously exploring alternate sources of finance including sales of non-core assets to generate adequate cash inflows for meeting these obligations and to overcome this liquidity crunch.
Parsvnath Developers has approached one of its lender for one time settlement (OTS) of all dues and received a letter on basis of which the interest of Rs 37.60 crore for the period from January 2022 to September 2022 has not been provided considering the letter by lender is legally enforceable for implementation of OTS though the formal documentation and approval is yet to be in place, it said in the regulatory filing.