Realty giant DLF has reported a 78.76 per cent plunge in its consolidated net profit to Rs 396 crore for the quarter ended June 30 due to sharp decline in demand for its housing and commercial properties.
The company's profit stood at Rs 1,863.97 crore in the year-ago period, DLF said in a statement.
The consolidated revenue in the first quarter fell by 56.70 per cent to Rs 1,649.86 crore compared to Rs 3,810.62 crore in the same period previous fiscal.
"After a few difficult quarters last fiscal, we have seen a fairly good first quarter of the current fiscal. The economy on the whole has been showing signs of recovery, and activity in real estate sector has picked up suitably," DLF Vice-Chairman Rajiv Singh said.
The company said receivables from DLF Assets Ltd, a firm promoted by K P Singh to purchase commercial properties of the realty major, stands at Rs 2,600 crore compared to Rs 4,906 crore as on March 31, 2009. It is expecting another Rs 500 crore during the fiscal.
DLF has reduced its net debt by over Rs 2,000 crore from about Rs 14,000 crore at the beginning of the fiscal.
During the quarter, the company's land bank reduced by 2 million sq ft from 425 million sq ft due to sale of projects and land.
DLF, hit by credit crunch, is selling its various businesses, including non-core assets, lands and wind power business, to generate funds.
The company has already sold non-core assets worth Rs 500 crore and is expecting to raise another Rs 5,000 crore during this fiscal, the statement said.
Currently about 42 million sq ft area are under construction and it had commenced construction on approximately 8 million sq ft of land during the quarter, it added.
