B angalore: DLF Ltd, India’s largest real estate firm by market value, posted a 62.9% drop in its net profit for the quarter ended 30 September from a year earlier.
Net profit fell to Rs.139 crore in the second quarter from Rs.372 crore a year earlier.
Revenue fell 19.5% to Rs.2,039 crore.
In August, DLF sold a prime piece of land in central Mumbai to Lodha Developers Ltd for Rs.2,700 crore.
As part of the agreement, Lodha will also take over Rs.1,500 crore of liabilities that DLF unit Jwala Real Estate Pvt. Ltd incurred for the development, the company said.
Sandipan Pal, associate vice-president, Motilal Oswal Securities Ltd, said DLF’s revenue booking in the September quarter was low. “Typically, DLF’s launches are skewed towards the second half of the year. We have to wait and see what the management says on this,” said Pal. On the overall performance of real estate firms in the September quarter, Pal said while in Bangalore developers have done well, in Mumbai early signs of sales growth are visible with project approvals trickling in.
Shares of DLF dropped 2.41% to close at Rs.206.15 on Monday on BSE, while the benchmark Sensex dropped 0.07% to end at 18,670.34 points.