DLF net falls 13% faces Rs 547 cr I-T notice

The country’s largest real estate company DLF on Tuesday reported a 12.81 per cent decline in its consolidated net profit for the first quarter ended June 30 at Rs 358.36 crore. High input cost and rising interest rate may have had an impact on the performance of the company, analysts said.

Though net profit was down to Rs 358.36 crore for the quarter ended June 30 against Rs 411.03 crore for the corresponding period last year, it recorded a 16 per cent increase in its revenue to Rs 2,503 crore compared to Rs 2,161 crore in the first quarter of 2011-12. EBITDA was up by 5 per cent to Rs 1,168 crore.

The company’s chief financial officer (CFO) Ashok Tyagi called the environment difficult to operate, yet termed the results as “stable , beginning for the fiscal”. He said, the successive rate hikes by the Reserve Bank of India would have a moderating effect on demand.

In line with its strategy of concentrating on its core business, DLF realised Rs 165 crore from divesting its non-core assets during the quarter. Debt levels have remained similar to the previous quarter, pointed out Tyagi. “Our momentum on the non-core asset/business divestments have gathered pace and these coupled with operational cash flows will help us in moderating our current debt levels”, he said.

The company recorded 2.2 million sq ft sales during the quarter, versus 1.9 million sq ft in the corresponding quarter last year. It handed over 1.9 million sq ft of area against 1.4million sq ft last year.