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DLF slips after weak Q1 earnings

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Capital Market
Last Updated : Aug 01 2014 | 11:57 PM IST

DLF fell 1.92% to Rs 194.60 at 9:33 IST on BSE after consolidated net profit fell 29.48% to Rs 127.77 crore on 24.52% decline in total income to Rs 1,851.60 crore in Q1 June 2014 over Q1 June 2013.

The result was announced after market hours on Thursday, 31 July 2014.

Meanwhile, the BSE Sensex was down 136.51 points, or 0.53%, to 25,758.46.

On BSE, so far 2.47 lakh shares were traded in the counter, compared with an average volume of 18.94 lakh shares in the past one quarter.

The stock hit a high of Rs 195.20 and a low of Rs 190.20 so far during the day. The stock hit a 52-week high of Rs 242.80 on 9 June 2014. The stock hit a 52-week low of Rs 120.25 on 6 August 2013.

The stock had underperformed the market over the past one month till 30 July 2014, falling 6.84% compared with 2.65% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 42.71% as against Sensex's 16.37% rise.

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The large-cap real estate company has an equity capital of Rs 356.32 crore. Face value per share is Rs 2.

DLF's EBITDA (earnings before interest, taxes, depreciation and amortization) fell 18% to Rs 863 crore in Q1 June 2014 over Q1 June 2013.

DLF said it booked 0.38 million square fee (msf) sales in Q1 June 2014. It had 57 msf of projects area under construction at the end of the quarter.

DLF said it realized Rs 240 crore from divestment of non- core assets.

Recognizing that the real estate/housing sector is a key contributor to the growth of GDP and employment, the government has announced a slew of measures in the Budget that will result in stimulus to the real estate industry in the medium term. Additional tax exemptions for consumers, categorization of 'affordable' housing an infrastructure status, and tax benefits to the real estate investment trusts (REITs) will go a long way in the revival of the industry, DLF said in a statement.

The company said it expects the market conditions to be challenging and demanding in the short term. Whilst the company believes that the slowdown is bottoming out, it will take a couple of quarters for the ground situation to improve, it said.

DLF said it remains committed to its medium term strategy of continuing with its execution run rate thereby creating more stock which can result in better and faster realizations as the cycle turns. Additionally, it will continue to invest to improve the quality of land through payment of government charges and infrastructural improvements. The company also remains focused to improve the quality and pricing of debt through instruments such as CMBSs, DLF said.

DLF's primary business is development of residential, commercial and retail properties. It has approximately 308 million square feet (msf) of planned projects with 55 msf of projects under construction.

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First Published: Aug 01 2014 | 9:33 AM IST

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