DLF, India's largest real estate company, posted a 49 per cent fall in consolidated net profit at Rs 145 crore for the quarter ended December 2013, owing to a rise in finance costs and a one-time provision of Rs 411 crore related to a settlement with the Delhi Development Authority (DDA).
The company had recorded a net profit of Rs 284.8 crore in the year-ago period.
During the December quarter, finance costs increased to Rs 633 crore, about 8.9 per cent more compared with Rs 581 crore in the corresponding quarter of 2012-13.
Through the divestment of non-core assets, DLF managed to reduce its debt to Rs 17,400 crore at the end of December 2013 form Rs 19,508 crore at the end of September.
Earlier, the company had set a target of reducing debt to Rs 17,500-18,000 crore by the end of 2013-14. In a statement, DLF said it was comfortable with its net debt level, adding it expected such levels to continue till the economic cycle improved. While operating income increased 57 per cent to Rs 2,058 crore from Rs 1,310 crore in the year-ago period, total income rose to Rs 2,590 crore from Rs 2,291 crore.
For the nine months ended December 2013, the company recorded sales booking of Rs 3,760 crore, against Rs 2,575 crore in the year-ago period.
The company's board has approved the reappointment of Rajiv Singh as vice-chairman for five years, effective April 9, 2014. It also approved the appointment of Mohit Gujral and Rajeev Talwar as whole-time directors for five years. Ved Kumar Jain, former president of the Institute of Chartered Accountants of India, has been appointed additional director in the capacity of non-executive independent director.
On the settlement with the DDA (related to a plot in Dwarka), the company said, "Though the transaction was completed subsequent to the quarter-end, a foreseeable loss of Rs 411.4 crore is recorded and disclosed as an exceptional item in these consolidated financial results." In July 2007, DLF had bagged a Rs 6,000-crore contract from the DDA for constructing a convention and exhibition centre in Dwarka. However, the project was scrapped. Now, DLF will return the 35 acres it had got from DDA for Rs 900 crore to develop the project.