DLF profit takes a 77% knock on weak realty demand
India’s largest property firm DLF on Thursday reported a 77% decline in profit for the September quarter on lower demand for homes, offices and shops, and higher interest outgo, but said it will continue to launch more residential projects to cash in on the renewed demand. As the demand has recovered, sales in homes have picked up considerably. We will continue to launch a mix of attractive products across locations, DLF vice-chairman Rajiv Singh said.
DLF’s profit of Rs 440 crore was slightly lower than analysts’ expectations. An ET poll of 15 analysts saw the net profit at Rs 492 crore. The company’s sales fell 53% to Rs 1,810 crore. Interest cost for the quarter went up five times from Rs 47 crore to Rs 248 crore from the year ago period.
The Delhi-based realty giant said it was focused on reducing debt. The company had, in the beginning of this fiscal, said it planned to raise Rs 5,500 crore through sale of non-core assets to halve its debt, which was Rs 14,000 crore then. The company on Wednesday said its sale of non-core assets and land parcels was “progressing as planned.” The company realised Rs 550 crore through asset sale in September quarter, leading to a cumulative realisation of Rs 1,064 crore this fiscal so far. DLF booked 2.74 million sqft of residential space, including 0.35 million sqft of luxury home space in a project in Gurgaon, during the quarter prompting it to say that luxury residential segment too was seeing a revival.
More : economictimes.indiatimes.com