DLF posts 56% rise in Q1 net profit

India's largest real estate firm DLF today reported a 56 per cent increase in its consolidated net profit at Rs 172.77 crore for the first quarter of this fiscal.

Its net profit stood at Rs 110.70 crore in the year-ago period, the company said in a regulatory filing.

Total income, however, declined to Rs 1,657.67 crore during April-June this fiscal from Rs 2,211.24 crore in the corresponding period of the previous year.

DLF said in a statement that quarterly numbers are not comparable as it has adopted new accounting standard from April this year.

DLF's net profit increased despite drop in total income as the company earned Rs 241.50 crore as its share of profit in associates and joint ventures.

The company has a joint venture with Singapore's sovereign wealth firm GIC for commercial real estate business. In the JV firm, DLF Cyber City Developers Ltd (DCCDL), DLF owns 66.66 per cent stake, while GIC has the rest.

GIC bought stake in DCCDL for Rs 9,000 crore in December last year.

"Net profit would have been lower by Rs 111 crore if revenues had been accounted for on the earlier standard," DLF said.

The new sales booking during the quarter stood at Rs 600 crore.

"Given the current momentum, the company remains on track to achieve fresh sales booking of Rs 2,0002,250 crore in the current fiscal," DLF said.

The company said that its commercial leasing business continues to grow steadily and is experiencing healthy momentum.

It expected the under-construction portfolio of about 3.7 milliion sq ft to begin generating revenues from next fiscal.

DCCDL is also expected to double the size of its portfolio from existing 27 million sq ft over the next decade.

DLF said it is working towards achieving net debt zero in its development business in the near future.

This would be achieved through equity infusion during the current year.

DLF would continue to focus on monetisation of finished inventory to reduce its debt and development of housing and commercial assets.

"The consistent efforts put by the company have now come to fruition and the company in Q1FY19 achieved break-even cash flows from operations," the statement said.