DLF net profit falls 15% to Rs 379 crore in Dec quarter; sales bookings nearly double to Rs 2,018 crore

New Delhi: Realty major DLF Ltd on Monday reported a 15 per cent fall in its consolidated net profit to Rs 379.49 crore for the December 2021 quarter, while sales bookings nearly doubled to Rs 2,018 crore on strong demand for its luxury homes.

Its net profit had stood at Rs 449 crore in the corresponding quarter last year.

Total income during October-December 2021 grew marginally to Rs 1,686.92 crore, compared with Rs 1,668.22 crore in the year-ago period, according to a regulatory filing.

DLF's net profit fell despite higher income because of a provision of an exceptional item of Rs 224 crore.

"One of the investee companies has defaulted in meeting its debt obligation mainly due to project execution delays arising out of disruption caused by the COVID-19 pandemic," the notes of account pointed out.

The company believes that the project remains fundamentally sound and it continues to work with the relevant parties to resolve this matter.

"However, given the uncertainty involved related to the timing of the resolution, management has considered an impairment provision of Rs 224.43 crore on a best estimate basis and disclosed as an exceptional item in these consolidated financial results," the notes added.

Net profit increased to Rs 1,094.78 crore during the April-December 2021 period, from Rs 605.23 crore in the year-ago period.

Total income rose to Rs 4,485.72 crore in the first nine months of this fiscal, from Rs 4,038.30 crore in the corresponding period of the previous year.

In a statement, DLF said the company clocked record new sales in the December quarter amounting to Rs 2,018 crore, reflecting annual growth of 97 per cent.

The cumulative sales bookings for a nine-month period stood at Rs 4,544 crore, demonstrating a strong rebound in this segment.

The company continues to witness sustained demand traction for the independent floors across the Gurugram market and continues to bring new launches in this segment.

"Residential markets continue to exhibit improving demand trends and we expect these to continue for a long term.

"Given this positive outlook and strong support from fundamental drivers, we continue to leverage this upcycle by scaling up our new product offerings across segments and geographies," the statement said.

Price growth coupled with increasing volumes will lead to further margin expansion in the portfolio, DLF said.

"Surplus cash generation of Rs 764 crore during the quarter resulted in a marked reduction in our net debt which stood at Rs 3,220 crore at the end of the quarter," DLF said.

The offices business continues to be on a recovery trajectory. However, the COVID-19 resurgence might push out the recovery temporarily.

DLF has developed 153 real estate projects and built an area of about 330 million square feet.

It has 215 million square feet of development potential across residential and commercial segments.

The group has an annuity portfolio of over 35 million square feet.