DLF net profit plummets 46% to Rs 98 cr

Total income fell to Rs 2,178 crore, against Rs 3,110 crore in the year-ago period

DLF, the country’s largest property developer by market capitalisation, posted a 46 per cent drop in its net profit for the third quarter of the current financial year. The net profit stood at Rs 98.1 crore, against Rs 182.1 crore in the year-ago period.

Its total income fell 30 per cent to Rs 2,178 crore, against Rs 3,110 crore in the year-ago period. Its interest charges went up 13 per cent to Rs 758.6 crore against Rs 670.6 crore in the year-ago period. 

Responding to the stake sale in its rental arm DLF Cyber City Developers (DCCDL), it said the discussion with shortlisted investors is at an advanced stage and shall be presented to a committee of independent directors for their evaluation and final decision. According to reports, it is in talks with Blackstone and GIC for the sale.

“In lieu of this, the conversion period for the compulsorily convertible preference shares (CCPS) issued to the promoters of DCCDL has been extended by one year at their request to facilitate its sale,” it said.

“The performance in the last quarter was subdued as markets adjusted itself to a new paradigm initiated by the demonetisation move. While demonetisation is extremely positive for the company and the overall industry, it has had a short-term negative impact on secondary sales, which in turn has impacted primary off-take. The company expects this period of adjustment may continue for the next few quarters till the secondary market stabilises and customers start to purchase new products,” DLF said.

Meanwhile, the company continues to remain focused on execution and creation of finished inventory. 

With record deliveries of 11 million sq ft in the first nine months of the financial year, the residential projects under construction have come down to 19 million sq ft, it said.