DLF net down 18% on high financing costs

The net profit of DLF, India’s largest real estate company, fell 18 per cent to Rs 292 crore for the quarter ended June, compared with Rs 358 crore for the corresponding period last year. This was primarily due to the high cost of financing and high inflation.

For the quarter ended March, DLF’s net profit stood at Rs 212 crore.

Net sales fell 10 per cent to Rs 2,197 crore, compared with Rs 2,447 crore in the year-ago period. The company sold 1.34 million sq ft in the quarter ended June, compared with 2.3 million sq ft in the corresponding quarter last year. DLF did not launch any major project during the quarter. It plans to roll out at least one, the Magnolia Phase 2 project, in October. In the quarter ended March, the company had launched two projects in New Gurgaon.

DLF leased 0.29 million sq ft during the quarter and delivered 2.05 million sq ft area, up from 1.9 million sq ft in the year-ago period. “Through the outsourcing of construction, the company remains focused on faster execution of projects. It shall follow a product mix that envisages high-visibility projects, which would result in better value addition,” read a company statement.

About 48 million sq ft was under construction during the quarter.

The company’s expenses fell 13 per cent to Rs 1,309 crore from Rs 1,505 crore in the corresponding period last year. The cost of plots, development rights, etc, fell 31 per cent to Rs 644 crore from Rs 942 crore in the year-ago period.

The company did not disclose its debt. As on March 31, DLF’s debt stood at Rs 22,725 crore.

The company realised Rs 369 crore from disinvestment of non-core assets during the quarter. It offloaded its entire stake in Adone Hotels and Hospitality Limited to Kolkata-based Avani Projects and Square Four Housing & Infrastructure for Rs 567 crore. Till the last sale, proceeds from divestment stood at Rs 4,844 crore. In an analyst presentation for the quarter ended March, the company had stated the overall non-core divestment target of Rs 10,000 crore would be achieved in the medium term. “The company remains committed to its objective of consolidating its operations by focusing on the core and divesting the non-core,” read the company statement.

On Monday, DLF shares closed at Rs 211.25, up two per cent from its previous close. The results were announced after markets closed.