Bengaluru: DLF Ltd, India’s largest real estate firm, posted a 23.81% rise in net profit to ₹414.10 crore in the December quarter from a year earlier. Its net profit stood at ₹335.15 crore in the year-ago period.
The company saw 36.26% fall in total income to ₹1,533.34 crore during the period, from ₹2,405.89 crore in the corresponding period previous year, DLF said in a regulatory filing. DLF has declared an interim dividend of ₹1.20 per share.
Despite fall in total income, its net profit increased due to an exceptional gain of ₹231 crore during the December quarter.
DLF said it received good response for its ready to occupy premium project ‘Ultima’ in Gurugram and has clocked sales of around ₹800 crore from the launch of the second phase and remains focused on monetisation of its completed inventory. On the overall luxury residential segment, DLF said it is witnessing subdued demand currently and this may continue for a few quarters.
“The company is now working towards re-positioning its finished inventory and bringing differentiated products according to the current market dynamics. We plan to upgrade our existing plotted inventory to independent floors, which generally has shown better traction in the market. The current plan is to offer approximately 7 million sq ft of finished homes on its already developed plots," DLF said in a statement.
Additionally, it is is also evaluating launch of commercial projects in select markets.
Sequentially, DLF’s net profit and total income fell 6.83% and 20.96% respectively.
In January, DLF said it will invest ₹5,000 crore to develop a commercial project, led by office development and some retail space, on 27 acres in Chennai’s Taramani area. With this project, DLF would have around 14 million sq ft of development in the southern city, and would become the second largest market after Gurugram.
While the residential business will continue to focus on Delhi and its suburbs, its core market, the company has also outlined a pan-India strategy to expand its rental office portfolio across Chennai, Hyderabad and Pune.
DLF plans to strengthen its portfolio of rental assets with its partner, Singapore’s sovereign wealth fund GIC Pte Ltd, monetize residential inventory, start the next construction cycle, and improve return on equity (RoE) in fiscal year 2020-21, Ashok Kumar Tyagi, whole-time director, DLF, told Mint in a recent interview.
DLF Ltd gained 3.32% to close at ₹253.50 on Thursday on the BSE, while the benchmark index, Sensex gained 0.87% to close at 41142.66 points.