DLF net up 6% on growing demand

A MIXED THIRD QUARTER FOR INDIA INC

DLF, India's biggest real estate developer, posted a six per cent rise in net profit at Rs 2,139 crore for the third quarter ended December 31, 2007, compared with Rs 2,018 crore in the preceding quarter, due to growing demand for houses, offices and hotel space.

Total revenues rose 9 per cent to Rs 3,651.25 crore in the third quarter, compared with Rs 3,349 crore in the preceding quarter, the company said today.

DLF officials said the company expects an annual profit of nearly Rs 8000 crore for financial year 2007-08. DLF shares fell 2.38 per cent to Rs 862.20 on the BSE at close of trade Wednesday.

DLF vice-chairman Rajiv Singh said, "We plan to build 6,000 apartments in the ongoing fourth quarter, compared with 3,000 apartments in the third quarter."

"The size of the flats would be around 1,200-1,600 square feet and priced over Rs 40 lakh. Robust economic growth is keeping demand buoyant," Chief Financial Officer Ramesh Sanka added.

Interestingly, DLF proposes to focus on user-buyers, by restricting sales to one unit per family, something that government owned developers such as the Delhi Development Authority or Noida do.

Singh also expressed concern over the high interest rates.

"High interest rates increase the transaction cost for consumers, which in turn affect us. I think interest rates will come down in the near future," he added.