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HB Estate Developers


HB Estate Developers operates in the real estate industry – constructing hotels, shopping malls and residential properties; and renting commercial space.

It is currently involved in hotel construction for Taj Vivanta in Gurgaon.  It also has a 57% interest in a real estate project with Parsvanth Developers costing about 30cr.  The project is currently loss making but is backed by equivalent net assets.

Since the company is primarily an investment company, the balance sheet would be more significant to understanding the financial aspects of its operations than the income statement.  The company had over 300cr invested in its main project.  It financed this with 240cr of external debt net of 24cr in cash and liquid assets as at the end of the last financial year.

The construction business is subject to the risk of rising material costs (steel, cement etc.).  It is also adversely impacted by crude oil price rises, which impact hotels’ tourism revenues. 

Furthermore, the industry is plagued by the lack of a uniform regulatory environment, high stamp duties, manpower shortages, lack of market research and reliable databases (for informed decision-making) etc.
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  1. Real Estate IndiaDecember 2, 2011 at 3:12 AM

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