DLF Q1 profit falls by 58% to Rs 109 crore YoY

Workers walk past a billboard of DLF Ltd. at Gurgaon on the outskirts of New Delhi

Workers walk past a billboard of DLF Ltd. at Gurgaon on the outskirts of New Delhi

India's largest realty firm DLF today reported 58 per cent decline in consolidated net profit at Rs 109.01 crore for the quarter ended June.

Total income of the company, however, increased by 9% to Rs 2,211.24 crore in the April to June quarter this year, compared with Rs 2,025.58 crore in the same period last year.

Total expenses during the quarter under review stood at Rs 1,604.19 crore as against Rs 968.99 crore in the year-ago period.

In February past year, the company had signed a definitive share purchase agreement with Reliance Infrastructure for acquisition of its entire cement business for an enterprise value of Rs 4,800 crore.

The promoters would invest a significant amount from this proposed transaction into DLF Ltd, which will use it for reduction of debt that has crossed Rs 25,000 crore. "The company expects that sector would achieve normalcy over next 2-3 quarters".

"Though the results are below expectations due to unforeseen disruption in some key markets where the company operates, it was a quarter of major consolidation and capacity building across functions, which makes the Group well positioned for the economic upturn expected in the coming months and the next fiscal year", said company Chairman Harsh V. Lodha.

The demand for office leasing space continues to be good for the company.

After the roll out of the Real Estate Regulatory Act in the June quarter, DLF said there was uncertainty in the market as each state followed a different time-table for adoption of the central law and framing of their rules. "The company is fully compliant with GST regime", DLF said.