DLF soars 14% on strong June-quarter results

DLF reported a consolidated net profit of Rs 110 crore in June quarter

DLF soared 14% to Rs 176 on BSE in intra-day trade after the real estate developer reported a consolidated net profit of Rs 110 crore for the quarter ended June 2017 (Q1FY18).

The company had posted profit of Rs 261 crore in the same quarter year quarter. The last year profit exceptional gain of Rs 329 crore, which include one-time profit of Rs 372 crore from DT cinema sales & Rs 43 crore Chennai IT park loss.

“The company recorded consolidated revenues of Rs 2,211 crore in Q1FY18, up by 9% from Rs 2,025 crore in previous financial year. EBIDTA ((earnings before interest, taxation, depreciation and amortization) stood at Rs 1,067 crore, reflecting an increase of 18% from Rs 903 crore,” DLF said in a statement.

With reduction in benchmark interest rate by the Reserve Bank of India this month and markets guiding towards further softness in interest rate, the sector should witness a recovery soon, it added.

Despite growth in the economy, the demand for residential real estate continued to be soft. Implementation of Real Estate Regulatory Act (RERA) and Goods & Service Tax (GST) elongated the sales cycle. The company expects that sector would achieve normalcy over next 2-3 quarters.

At 11:22 am, the stock was up 12% at Rs 174, as compared to a 0.80% rise in the S&P BSE Sensex. A combined 15.76 million shares changed hands on BSE and NSE so far.