New Delhi: DLF Ltd, the country’s largest real estate firm by sales, on Monday reported an 18.29% year-on-year drop in consolidated net profit for the June quarter to Rs 292.79 crore on lower demand in key markets.
Revenue fell 10.14% to Rs 2,197.71 crore.
The company also said it raised Rs 369 crore in the first quarter by selling non-core assets.
DLF has planned to raise Rs 10,500 crore overall by selling non-core assets and about 12 million sq.ft. of residential space, mainly to reduce debt.
“The company remains fully committed to achieve the divestment target of its non-core assets. It remains committed to its objective of consolidating its operations by focusing on the core and divesting the non-core,” DLF said in a statement on Monday.
Mumbai-based Angel Broking Ltd had said in its first-quarter earnings preview for the sector that real estate companies would report flat to moderate residential volumes on account of weak demand as a result of high interest rates and elevated property prices, especially in Mumbai and the National Capital Region.
Repayment plan: DLF’s corporate office in New Delhi. The company plans to raise Rs10,500 crore by selling non-core assets to reduce debt. Photo: Ramesh Pathania/Mint
In the fourth quarter of fiscal 2012, DLF reduced its net debt by a mere Rs 33 crore. Borrowings stood at Rs 22,725 crore.
By end-September, DLF expects to sell three non-core properties—its hotel business Aman Resorts, a prime plot in Mumbai, and its wind energy business, Saurabh Chawla, executive vice-president, finance, had said in a presentation to analysts on 31 May after announcing the fourth-quarter results.
DLF plans to reduce debt through “strengthening operational cash flows, enhancing momentum on non-core divestments along with a moderation in land aggregation and capex,” Chawla had said.
In fiscal 2012, DLF achieved gross sales bookings of 13.5 million sq.ft, up from about 10 million sq.ft in the previous year.
DLF announced its first-quarter results late Monday, after the stock exchanges closed. Earlier in the day, shares of DLF rose 2% to close at Rs 211.25 on BSE, while the benchmark Sensex rose 1.25% to 17,412.96 points.