DLF slips after reporting Q4 net loss of Rs 1,858 cr

DLF fell 3.42% to Rs 151.05 after the company reported a consolidated net loss of Rs 1857.76 crore in Q4 March 2020 as against net profit of Rs 436.56 crore in Q4 March 2019.

Net sales fell 32.2% to Rs 1694.20 crore in Q4 FY20 over Q4 FY19. Interest payments were down by 56% to Rs 235.27 crore in Q4 FY20 from Rs 535.15 crore in Q4 FY19. Pre-tax loss in the fourth quarter stood at Rs 129.72 crore. The company had reported a pre-tax profit of Rs 229.70 crore in the corresponding period last year.

Current tax expenses were at 1907.33 crore in Q4 March 2020 as compared to Rs 37.38 crore in Q4 March 2019. "There was a one-time DTA (Deferred Tax Asset) reversal of Rs 1,916 crore, on adoption of lower-tax rate," the company said in a statement.

In view of COVID-19, after a thorough analysis and following a prudent approach, the company has undertaken certain provisions to reflect changes in the carrying value of some of its assets and investments. This has led to a one-time, exceptional provision (net of taxes) of Rs 272 crore in Q4 FY20.

DLF reported consolidated net loss of Rs 583.19 crore in the year ended March 2020 (FY20) compared with net profit of Rs 1319.22 crore in the year ended March 2019 (FY19). Net sales during the year declined 27.3% on a YoY basis to Rs 6,082.77 crore.

On the outlook front, DLF said: "The COVID-19 pandemic has led to industry-wide short-term recalibration of demand. While the long-term impact and full extent of this crisis remain to be seen, the company retains a positive outlook for the long term on account of its healthy balance sheet, strong brand image and unwavering commitment to quality. The Group has met all its stakeholder commitments. The company has not availed any moratoriums or deferments on its debt obligations.

The company has sufficient liquidity to sail through these uncertain times. Our heightened approach to cost optimization is expected to help ensure healthy margins in the times to come. Owing to the extended lockdown, malls across the country have not been operational and this has led to some short-term pain for the tenants. We anticipate that some semblance of normalcy may return by Q3 FY21, whereby players with strong operational expertise and financial resilience will continue to gain foothold."

Meanwhile, the realty major informed that Dr KP Singh vide letter dated 4 June 2020 tendered his resignation from the position of non-executive director / chairman of the company. The DLF Board approved the appointment of Rajiv Singh as the new chairman of DLF. "Dr K P Singh will nonetheless continue in a non-executive role as chairman-emeritus", the company said in a statement.

DLF is primarily engaged in the business of development and sale of residential properties and the development and leasing of commercial and retail properties.

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