Bengaluru: DLF Ltd, India’s largest property developer, on Tuesday said fiscal third quarter profit rose 42-fold to Rs4,111.95 crore due to a one-time gain.
Revenue fell 14.8% to Rs1,855.21 crore in the three months ended 31 December from a year earlier, the company said.
In December, DLF said its promoters had concluded the sale of a 33.34% stake in its rental arm to GIC Pte Ltd for around Rs8,900 crore.
In August, the promoters sold the entire 40% stake in DLF Cyber City Developers Ltd for Rs11,900 crore, the proceeds of which were to be infused into DLF, primarily for debt reduction. The transaction involved the stake sale to GIC and buyback of remaining shares worth Rs3,000 crore by DLF Cyber City.
The December quarter net profit includes one-time pre-tax gain of Rs8,569 crore due to restatement of DLF’s investment in DLF Cyber City, as DLF Cyber City is now being accounted as a joint venture instead of a subsidiary, DLF said in a statement.
The Rs9,000 crore of debt reduction now is post the allotment of compulsorily convertible debentures and warrants to promoters, against their investment of proceeds from the GIC deal into DLF.
Meanwhile, Realty firm Unitech Ltd’s loss widened to ₹ 103.41 crore in the December-ended quarter from a loss of ₹ 7.13 crore in the year-ago quarter. Revenue, however, rose by 32% to ₹ 48.47 crore.
“The company has entered into various agreements to sell certain land parcels towards the compliance of the orders of the Supreme Court. We are also pushing for recoveries from state governments of West Bengal, Telangana and Andhra Pradesh," a Unitech spokesperson said in a release.
In January, Unitech informed the Supreme Court that it had finalized a Rs400 crore deal for the sale of two land parcels in Chennai to Omshakthy Agencies (Madras) Pvt. Ltd that would enable it to complete unfinished projects and refund buyers.
The company was required to deposit Rs750 crore by December to secure bail for its director Sanjay Chandra, who is in jail in a case of alleged forgery lodged by buyers of a Unitech housing project in Gurugram. It has deposited Rs18 crore till now. The next hearing is expected to be on 16 February.
The results of both companies were announced after market hours.
DLF Ltd gained 2.07% to close at Rs233.70 per share on Tuesday on the BSE, while the benchmark index, Sensex gained 0.87% to close at 34,300.47 points and the BSE Realty Index gained 1.73% to close at 2517.99 points and Unitech Ltd gained 1.32% to close at Rs7.65 per share.