Bengaluru: DLF Ltd, India’s largest property developer, said on Tuesday that fiscal third-quarter profit fell 46% to Rs98.14 crore from the year-ago period.
Revenue also fell 30% to Rs2,057.92 crore during the three months ended 31 December.
The realty firm’s stake sale in its rental unit, which is expected to raise about Rs12,000-13,000 crore, is at an advanced stage with discussions on with shortlisted investors. The transaction involves promoters selling 40% in DLF’s commercial property arm, DLF CyberCity Developers Ltd (DCCDL), to institutional investors. The proceeds from the sale will be infused into DLF and be used mainly to reduce debt.
“In respect of DCCDL CCPS (compulsorily convertible preference shares) transaction, the discussion with shortlisted investors is at an advanced stage and shall be presented to the committee of independent directors for their evaluation and final decision. In lieu of this, conversion period for CCPS issued to the promoters in DCCDL has been extended by one year at their request to facilitate its sale,” DLF said in a release.
DLF on Saturday said that its promoters have deferred till March next year the conversion of securities held in the firm’s subsidiary into equity shares. The deadline to convert CCPS into shares was 19 March this year, but the same could not be executed in view of Securities and Exchange Board of India’s order in October 2014 banning DLF and six executives from the capital market for the next three years.
“The performance in the last quarter was subdued as markets adjusted itself to new paradigm initiated by demonetisation move. While demonetisation is extremely positive for the company and the industry, it has had short-term negative impact on secondary sales, which in turn has impacted primary off-take. The company expects this period of adjustment may continue for next few quarters till the time secondary market stabilizes and customers start to purchase new products,” DLF said in a statement.
DLF said it remains focused on execution and creation of finished inventory. With deliveries of 11 million sq. ft in the first nine months of 2016-17, under-construction residential projects have come down to 19 million sq. ft.
Meanwhile, office leasing business continues to witness healthy traction, backed by expansion in services sector. Witnessing the demand in office leasing, DLF is building two new office complexes in Gurgaon and Chennai.
PTI contributed to this story.