DLF Q1 net profit dips by 5% at Rs 121.55 cr

India's largest realty firm DLF today reported a 5 per cent decline in consolidated net profit at Rs 121.55 crore for the quarter ended June due to higher finance cost and rise in operational expenses.
Its profit stood at Rs 127.77 crore in year-ago period.
Total income increased to Rs 2,345.62 crore in April -June quarter of 2015-16 from Rs 1,851.6 crore in the year-ago period, DLF said in a filing to the BSE.
Net profit fell during the April-June quarter as finance cost increased to Rs 604.32 crore from Rs 558.10 crore while total expenses rose by 37 per cent to Rs 1,539.96 crore from Rs 1,122.70 crore during the period under review.

Cost of land, plots, development rights and constructed properties rose by 61 per cent to Rs 1,150.79 crore.
On standalone basis, the company posted a net loss of Rs 101.88 crore for the quarter ended June 30, 2015, against a net profit of Rs 72.64 crore in the year-ago period. Income decreased to Rs 535.71 crore for the quarter ended June from Rs 762.38 crore for the quarter ended June 30, 2014.

In a statement, DLF said it expects to deliver about 20 million sq ft of area over next few quarters which will create ready to move in stock.

"The company believes it would be more fruitful to be prepared for the up cycle in the market by readying finished stock rather than launching new projects in these tepid market conditions," it said.
The committee of independent directors is shortly expected to provide guidance on the best way forward for the growth of the rental business and the best solution for resolving the CCPS issue, it added.
In late 2009, DLF had merged its subsidiary DLF Cyber City Developers Ltd (DCCDL) with promoter firm Caraf Builders & Constructions. DCCDL had issued CCPS (Compulsorily Convertible Preference Shares) worth Rs 1,597 crore to promoters.

DLF said it has created a large platform of rent yielding office and retail assets, which it looks forward to partially monetise to cut debt of over Rs 20,000 crore.
DLF achieved sales bookings of 0.16 million sq ft and leased 0.21 million sq ft. It handed over 1.2 million sq ft.
Post first quarter, the company said it has executed a sale deed on August 5 for sale of a project. "As per the terms of the sale deed, the company has recorded foreseeable loss of about Rs 47.54 crore reflecting the difference between the sales consideration and carrying cost of the project and is classified as an exceptional item in these results".

DLF has commenced development of a new office complex in the Cyber City area in Gurgaon. It expects to start commercial operations of the Mall of India, Noida after regulatory nods.
Its share price fell by 2.69 per cent at Rs 114.05 apiece on the BSE.