DLF Q1 net profit tanks 58 per cent to Rs 109.01 crore

Brunilde Fioravanti
Agosto 13, 2017

The decline in net profit during the quarter under review was due to one-time extraordinary gain of Rs 329 crore in the corresponding three months from the sale of DT Cinemas to PVR group.

On Saturday, DLF posted a 58% drop in net profit to Rs109.01 crore in the April-June quarter while its revenue rose marginally by 9% to Rs2,211.24 crore, compared to the corresponding year-ago quarter.

The company's revenue from operations during the June quarter this fiscal saw a 59.4 per cent year-on-year jump to Rs 1,667.74 crore from Rs. 1046.12 crore for the same quarter last fiscal, according to a stock exchange filing. DLF is in the process to sell a 40% stake of promoters in DCCL to Singapore sovereign wealth firm GIC. Implementation of RERA (the real estate law) and GST has continued to elongate the sales cycle.

Prices in North India, another major market of the company, remained subdued and sharp increase in road freight and fuel prices put pressure on margins, but this was partly compensated by the performance in Eastern markets, which witnessed an upswing in demand. "The company expects that sector would achieve normalcy over next 2-3 quarters". "The company shall have a healthy pipeline of finished inventory for sale in foreseeable future when the demand returns", the statement said.

In February previous 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.

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