Real estate major DLF reported a 49 per cent drop in its net profit for the July-September quarter. The Delhi-based firm posted Rs 227.8 crore net profit — down from Rs 443.4 crore in the corresponding quarter last year.
Disruptions following the pandemic impacted its top line too. The group’s consolidated revenue from operations declined 6 per cent year-on-year (YoY) to Rs 1,609.8 crore, from Rs 1,715.5 crore.
The steep drop in its profit can be attributed to marginal reduction in costs of land, constructed properties and development rights, and higher outgo against exceptional items. Its performance, however, reflects better when compared to the previous quarter.
In April-June, it had posted Rs 72-crore net loss and its operating revenue had plunged 59 per cent to Rs 549 crore.
The management said in a statement, its “residential business is seeing green shoots of demand, with consumer interest witnessing rising trends. We believe that consistent quality supply in conjunction with affordability will lead to overall recovery in demand”.
Further, its development business operations remained strong during the quarter.
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New sales bookings for the quarter rose to Rs 853 crore, compared to Rs 152 crore in the previous quarter. “We are getting ready for a new build-out cycle and have identified a strong pipeline to be launched across various segments and geographies over the next few years,” it said.
On a standalone basis, DLF’s financial performance in the quarter remained poor. While its total sales plunged 48.5 per cent, its net profit nosedived. DLF’s standalone profit after tax stood at Rs 482 crore or 75.5 per cent lower than Rs 1,967 crore it had reported in the same quarter last year.
According to the company, its long-term outlook towards the rental business remains positive.
For DLF, the office business remains stable and is exhibiting strong collections of over 98 per cent.
DLF Cyber Park, a 2.5-million square feet commercial development in Gurugram, commenced operations in August. It estimates that the addition of the asset to the rental portfolio will lead to an incremental revenue of up to Rs 400 crore.
“The retail segment is witnessing gradual recovery, with the luxury segment exhibiting better trends. With all our retail properties now open and restrictions lifted for multiplexes and entertainment zones, we expect an increase in footfall leading to recovery. We expect the festive season to provide the required fillip for this segment,” said DLF.