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DLF gains after clarification regarding CCI penalty

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Capital Market
Last Updated : Apr 09 2014 | 11:54 PM IST

DLF rose 1.96% to Rs 174.40 at 10:19 IST on BSE after the company issued a clarification with regard to penalty charged against it by the Competition Commission of India.

The company issued the clarification after market hours on Monday, 7 April 2014. The stock market was closed on Tuesday, 8 April 2014, on account of Ram Navami.

Meanwhile, the S&P BSE Sensex was up 106.70 points or 0.48% at 22,450.15.

On BSE, so far 1.36 lakh shares were traded in the counter as against daily volume of 9.24 lakh shares in the past one quarter.

The stock hit a high of Rs 175.40 and a low of Rs 172.20 so far during the day. The stock had hit a 52-week high of Rs 254.75 on 20 May 2013. The stock had hit a record low of Rs 120.25 on 6 August 2013.

The stock had outperformed the market over the past one month till 7 April 2014, advancing 2.43% compared with the Sensex's 1.93% rise. The scrip had, however, underperformed the market in past one quarter, gaining 4.46% as against Sensex's 7.97% rise.

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The large-cap real estate company has equity capital of Rs 356.29 crore. Face value per share is Rs 2.

DLF in its clarification to the exchange regarding news item titled "DLF slapped Rs 2.4 crore penalty by competition watchdog" said that the Competition Commission of India (CCI) had passed order charging a penalty of Rs 2.4 crore against the company in August 2011 based on complaints filed by certain alleged apartment owners association. The Competition Appellate Tribunal (COMPAT) vide its order dated 9 November 2011 granted stay against the orders of CCI imposing penalty and have further ordered that direction of CCI for modification of the terms of agreement shall remain in abeyance.

DLF said that the current order appears to be a sub-set of ongoing cases. The company is perusing the order and seeking counsel's advice including but not limited to appealing against the above, DLF said in its clarification.

DLF's consolidated net profit fell 49% to Rs 145.29 crore on 57.1% growth in net sales to Rs 2058.42 crore in Q3 December 2013 over Q3 December 2012.

DLF has 314 million square feet (msf) of planned projects with 52 msf of projects under construction. DLF's primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals. Its exposure across businesses, segments and geographies, mitigates any down-cycles in the market. From developing 22 major colonies in Delhi, DLF is now present across 15 states-24 cities in India.

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First Published: Apr 09 2014 | 10:20 AM IST

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