DLF Q2 consolidated profit down 63% at Rs 138.5 cr

The company had posted a net profit of Rs 372.41 crore in the corresponding period last year, DLF said in a statement.

Last Updated: Nov 12, 2012, 22:50 PM IST

New Delhi: Realty major DLF Monday reported 62.81 percent fall in its consolidated net profit for the quarter ended September 30, 2012, at Rs 138.51 crore due to decline in sales.

The company had posted a net profit of Rs 372.41 crore in the corresponding period last year, DLF said in a statement.

The consolidated sales during the second quarter fell by 19.46 percent to Rs 2,039.54 crore from Rs 2,532.41 crore in the year-ago period, it added.

The company's hotel and insurance businesses suffered a combined loss of Rs 82.88 crore during July-September period of 2012-13 financial year.

During the second quarter, DLF registered sales booking of 1.59 million sq ft of area, the statement said.

DLF also said it has sold non-core assets worth Rs 560 crore during July-September quarter, taking the total divestments proceeds till date to Rs 5,773 crore.

"The company continues to make steady progress on the balance divestments, which include Aman Resorts and Wind businesses and is very confident of their closure within the FY'13 and achieve net debt reduction to Rs 18,500 crore," the statement said.

DLF's net debt stood at Rs 22,680 crore as on June 30.

In the country's biggest realty deal this year, DLF had sold 17 acres of prime land in Mumbai to Lodha Developers for about Rs 2,700 crore, almost four times higher than the price it had paid in 2005 on purchase.

"The closing of the Jawala transaction (sale of NTC Mills land, Mumbai) represents a major milestone in the company's debt reduction objective and will be fully reflected in the Q3 of the current fiscal year," the company said.

Without sharing details, DLF said it has "completely re-tooled its business model and putting in place the 'best in class' project management and construction agencies".

Besides, the firm's rental portfolio continues to perform well, but leasing volumes remains muted due to overall economic conditions, it added.

Commenting on the numbers, DLF Group Chief Financial Officer Ashok Tyagi said: "The financial results for this quarter represent that the company is poised to get back on full growth mode.

"The company is now well positioned and positive to leverage its leadership with planned launches in excess of 9 million sq ft during the second half of the fiscal year. We truly believe that the worst is behind us!"

On standalone basis, DLF posted a net loss of Rs 19.54 crore as against a net profit of Rs 302.57 crore in Q2 of FY'12. The sales also declined by 66.60 percent to Rs 356.07 crore from Rs 1,066.05 crore.

Shares of the company today closed 2.41 percent down at Rs 206.15 apiece on the BSE.