DLF Q1 net profit dips 18% on higher interest costs
New Delhi: Country's largest realty firm DLF Monday reported 18.30 percent decline in its consolidated net profit for the quarter ended June 30 at Rs 292.79 crore, mainly due to higher interest outgo and lower sales.
It had posted a net profit of Rs 358.36 crore in the corresponding period last year, DLF said in a statement.
The consolidated income from operations during the first quarter also decreased by 10.14 percent to Rs 2,197.71 crore from Rs 2,445.82 crore in the year-ago period, it added.
DLF spent Rs 622.60 crore on finance costs in April-June period as against Rs 496.41 crore in the same period last year, up by 25.42 percent. It had a net debt of Rs 22,725 crore as on March 31, 2012.
During the quarter, DLF's sales booking fell by 41.74 percent at 1.34 million square feet area compared to 2.3 million square feet in the year-ago period.
The company also said it has sold non-core assets worth Rs 369 crore during April-June quarter, taking the total divestments proceeds till date to Rs 5,213 crore.
DLF has put its three major non-core assets -- hotel chain Amanresorts, wind energy business and a prime land in Mumbai -- on block for sale to raise about Rs 6,000 crore to reduce its huge debt.
The non-core businesses like DLF Pramerica Life Insurance Company and hotel segment witnessed losses of Rs 28.13 crore and Rs 1.58 crore respectively in last quarter.
"The company remains committed to its objective of consolidating its operations by focusing on the core and divesting the non-core... The company remains fully committed to achieve the divestment target of its non-core assets," the National Capital-based firm said.
DLF had earlier said the overall target of divestment of non-core assets of Rs 10,000 crore would be achieved in the medium term.
Talking about its future strategy, DLF said: "Through the outsourcing of construction, the company remains focused on faster execution of the projects and shall follow a product mix that envisages high visibility projects, which would result in better value addition".
The company's net profit has fallen despite its expenses during the first quarter going down by 13.01 percent to Rs 1,309.26 crore from Rs 1,505.04 crore in the year-ago period.
DLF shares today closed 2 percent up at Rs 211.25 apiece on the BSE.