China HGS Real Estate Inc. (HGSH) has reported a 36.69 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.82 million, or $0.02 a share in the quarter, compared with $1.30 million, or $0.03 a share for the same period last year.
Revenue during the quarter surged 62.20 percent to $11.11 million from $6.85 million in the previous year period.
Cost of revenue surged 86.75 percent or $4 million during the quarter to $8.61 million. Gross margin for the quarter contracted 1018 basis points over the previous year period to 22.55 percent.
Operating income for the quarter was $1.22 million, compared with $1.54 million in the previous year period.
Revenue from real estate activities during the quarter surged 62.20 percent or $4.26 million to $11.11 million.
Operating cash flow remains negative
China HGS Real Estate Inc. has spent $31.24 million cash to meet operating activities during the first half as against cash outgo of $23.62 million in the last year period. Cash flow from financing activities was $27.31 million for the first six months, up 14.06 percent or $3.37 million, when compared with the last year period.
Cash and cash equivalents stood at $2.29 million as on Mar. 31, 2017, up 39.18 percent or $0.64 million from $1.65 million on Mar. 31, 2016.
Net receivables were at $2.83 million as on Mar. 31, 2017, down 6.30 percent or $0.19 million from year-ago. Accounts payable declined 10.41 percent or $2.86 million to $24.60 million on Mar. 31, 2017.
Total assets grew 19.02 percent or $59.55 million to $372.65 million on Mar. 31, 2017. On the other hand, total liabilities were at $220.95 million as on Mar. 31, 2017, up 42.42 percent or $65.81 million from year-ago.
Return on assets moved down 18 basis points to 0.25 percent in the quarter. At the same time, return on equity moved down 28 basis points to 0.54 percent in the quarter.
Debt increases substantially
Total debt was at $129.06 million as on Mar. 31, 2017, up 153.64 percent or $78.18 million from year-ago. Shareholders equity stood at $151.70 million as on Mar. 31, 2017, down 3.96 percent or $6.25 million from year-ago. As a result, debt to equity ratio went up 53 basis points to 0.85 percent in the quarter.
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