DLF net profit down 58% in Q1

Ausiliatrice Cristiano
Agosto 13, 2017

Birla Corporation Ltd, the MP Birla group flagship company, today reported consolidated net profit at Rs 43.21 crore for the first quarter ended June 30, 2017.

Total income, however, rose by 9 per cent to Rs 2,211.24 crore in the first quarter of this fiscal from Rs 2,025.58 crore in the corresponding period of the previous year. The company's EBIDTA at Rs 1,067 crore was up by 18 per cent from Rs 903 crore.

In March, DLF promoters K P Singh and family had entered into an exclusivity pact with Singapore's sovereign wealth fund GIC for the stake sale.

Its net profit stood at Rs 261.85 crore in the year-ago period, the company said in a regulatory filing.

On the property market, DLF said in a statement, "Despite growth in the economy, the demand for residential real estate continues to be soft". In March DLF chose to sell 40 per cent of DCCDL for Rs 13,000 crore to an affiliate of Singapore's GIC. Implementation of RERA (the real estate law) and GST has continued to elongate the sales cycle. Back-end integration challenges continued as it was dependent upon the timing of the GST registrations of the vendors also, it said. "The company expects that the sector would achieve normalcy over the next 2-3 quarters", it said.

DLF also informed that the transaction for sale of compulsorily convertible preference shares (CCPS) in its rental arm DLF Cyber City Developers (DCCDL) is in advanced stages of discussion.

With the reduction in the benchmark interest rate by the RBI this month and the markets guiding towards further softness in the interest rate, the sector should witness a recovery soon.

The company said the results of the period are not comparable due to its acquisition of Reliance Cement Company which became its wholly-owned subsidiary from August 22, 2016. The company said that it shall have a healthy pipeline of finished inventory for sale in the foreseeable future when the demand returns.

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

"Development of two new towers in Chennai SEZ is expected to be completed in FY18 (2017-18) while development of Cyber Park, Gurugram is expected to be completed in FY19 (2018-19)", it added.

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