DLF net at Rs 1,515 cr

India's largest real estate developer DLF Ltd today declared a consolidated net profit of Rs 1,515.48 crore for the first quarter (April-June) of the current financial year, on a turnover of Rs 3,120.98 crore. On a standalone basis, its net profit stood at Rs 579.27 crore. For the previous financial year (2006-07), the company had registered a net profit of Rs 1,933 crore.

Although the figures are not comparable, the company said net profit for the first quarter, on an annualised basis, represented a 300 per cent increase.

DLF did not provide any financial details for the same quarter of 2006-07. Last year, DLF Assets Ltd, a company which buys some of DLF's commercial assets and is promoted by the Singh family, had accounted for 60 per cent of DLF Ltd's operating profit. DLF also announced that its near-term focus would be middle income housing, hotels and acquiring land for special economic zones. DLF is planning to spend over Rs 10,000 crore annually in the next few years for developing various realty projects across the country.

"A strong increase in volume of office, retail and high-end residential projects led to the profits," said Rajiv Singh, vice-chairman, DLF. The realty major listed on the bourses earlier this month and raised over Rs 9,000 crore in the country's largest initial public offering.

DLF has also increased its land bank from 10,255 acres as stated in its red herring prospectus for IPO to nearly 13,000 acres with a development potential of around 625 million square feet.

The company is also going back to its roots by laying an emphasis on middle income housing costing around Rs 45 lakh for a three to four bedroom apartment. The company, which promoted Gurgaon by selling middle-income housing in the 1980s and early '90s, had started focusing only on premium and luxury residential developments a few years ago.