DLF records loss of 71 crore in Q1 FY21

The realty major reported a consolidated net loss of Rs 70.65 crore in Q1 FY21 as against a net profit of Rs 414.72 crore in Q1 FY20.

Revenue from operations in the June quarter declined 58.8% to Rs 548.63 crore as compared to the same period last year. EBITDA fell 78% to Rs 99 crore in Q1 June 2020 from Rs 449 crore crore in Q1 June 2019. The company reported a pre-tax loss of Rs 179.48 crore in Q1 FY21 compared with pre-tax profit of Rs 158.86 crore in Q1 FY20.

With respect to outlook, DLF said that the company remains optimistic about the business and its growth returning to levels of normalcy.

"We have made significant progress in cost optimization, which has consequently resulted in significant reduction of overheads, enabling improvement of margins in times ahead. Tight cash management led to reduction in Net Debt by Rs 42 crore, despite such challenging times.

We ensured business continuity for our office tenants and the office business continues to hold on with robust collections of more than 95% for the quarter. However, retail business was impacted owing to retail malls remaining shut during the lockdown period. The retail malls have begun opening up but with restrictions for multiplexes, limited operational timings and social distancing measures.

Due to lockdown, residential segment was muted and accordingly, witnessed new sales booking of only Rs 165 crore during the quarter. The company continues to develop new products and projects with an increased focus on diversifying its product mix to include significant future volumes of mid-income housing.

Construction has recommenced at all our sites and we are operating at ~65% of pre-covid levels presently. Execution of new products across both development and rental business remains on track. The company remains focused on maintaining sufficient liquidity, tight cash management and gearing up for the future. The company did not avail any moratorium on its debt facilities and continues to honor all its financial obligations on time," the realty major said in a statement.

DLF is a real estate developer primarily engaged in the business of development and sale of residential properties and the development and leasing of commercial and retail properties. The company has developed approximately 153 real estate projects and developed an area of approximately 330 million square feet.

Shares of DLF was up 0.88% to Rs 143.65 on the BSE. It traded in the range of 140 and 147.40 so far during the day.

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