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DLF’s profit sinks 30%, still beats expectations

DLF’s profit sinks 30%, still beats expectations
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First Published: Wed, Jan 27 2010. 11 17 PM IST
Updated: Wed, Jan 27 2010. 11 17 PM IST
New Delhi / Bangalore: DLF Ltd, India’s largest developer by market value, posted a 30% drop in third quarter (Q3) net profit on Wednesday, but still beat Street expectations and said it was on track to meeting its targets for the full fiscal year.
Net profit fell to Rs467.89 crore in the three months ended 31 December, from Rs670.79 crore a year earlier, the company said in a statement. It was the sixth consecutive quarter of falling profit at DLF, but the profit was still higher than the Rs425 crore median estimate of 15 analysts surveyed by Bloomberg.
Consolidated revenue rose 43% to Rs2,151.81 crore in the three months, from Rs1,502.79 crore in the year earlier.
“Overall, though we remain cautious, we are on track to meet our targets in (the) current fiscal,” DLF’s vice-chairman Rajiv Singh said in the statement. “We are seeing an increase in enquiries in (the) commercial segment and hope recovery strengthens in the near future.”
With the economy rebounding, DLF saw renewed demand for for luxury and high-end housing in addition to stable demand for residential homes, Singh said.
DLF’s Q3 revenue came as a surprise to analysts because there hadn’t been any big sales in the quarter and the firm didn’t have any substantial launches, said Nitin Idnani, analyst at Enam Securities.
“However, DLF’s Q3 net profit of Rs468 crore was pretty much in line with our expectations,” he said.
The results followed the absorption of DLF Assets Ltd (DAL) by DLF, which increased the parent company’s debt by Rs2,200 crore to Rs16,200 crore. DLF used to sell its completed commercial assets to DAL, which accounted for up to 40% of the listed realtor’s revenue until December 2008. The integration is expected to be completed by the end of the current fiscal.
DLF said it had booked sales of 3.1 million sq. ft of residential space in the luxury/high-end and premium segments in the quarter gone by.
But analysts said that the only substantial sales that DLF booked in the October-December quarter was in phase II of the Capital Greens project at Shivaji Marg in Delhi.
DLF fell Rs26.70, or 7.76%, to Rs317.45 at the close of trading on the Bombay Stock Exchange on Wednesday.
tejeesh.b@livemint.com
Bloomberg contributed to this story.
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First Published: Wed, Jan 27 2010. 11 17 PM IST