The country's largest realty firm DLF today reported 3.80 per cent jump in its consolidated net profit for the quarter ended June 30 at Rs 411.03 crore on account of robust sales and divestment of non-core assets.
The company had posted a consolidated net profit of Rs 396 crore in corresponding period of the last fiscal, DLF said in a statement.
Consolidated sales and other receipts rose 22.95 per cent to Rs 2,028.53 crore in the quarter under review from Rs 1,649.86 crore in the same period last year.
The company's board has recommended a dividend of Rs 2 per share for 2009-10 financial year.
"DLF continues to focus on enhancing cash flows from operations and non-core assets sale with attention to timely execution of projects, without compromising on quality and compliances," DLF Executive Director Saurabh Chawla said.
During the quarter, the company generated a revenue of Rs 294 crore by selling some of its non-core assets such as land.
"DLF will continue to strike a balance between pricing and volumes in the residential segment. Commercial segment continues to lag the momentum exhibited by residential segment, though we are seeing increasing traction on the leasing," Chawla said.
He, however, said challenges remain on the inflation front, which could have an adverse impact on overall demand and input cost for the company.
Besides, the board also approved plans to dilute majority stake in its wholly-owned retail management subsidiary DLF Brands (DBL) to a promoter group firm as part of its strategy to exit from non-core business.
"The board approved further issue of equity shares by its wholly-owned subsidiary -- DBL to a promoter group company, subject to requisite approval of the shareholders. Following the approval, DBL will cease to be a subsidiary of DLF," the statement said.
DBL had earlier announced a major expansion plans with an aim to have 600 retail stores and bring around 15 global brands in India by 2012-13 at an investment of Rs 750 crore.
As per DLF's annual report for 2008-09, DBL had posted a net loss of Rs 7.41 crore on a turnover of Rs 47.39 crore.
Earlier, DLF had planned to raise Rs 2,700 crore this fiscal through sale of non-core assets as part of its plans to reduce net debt of Rs 16,421 crore by Rs 5,000 crore.
DLF had decided to raise Rs 5,500 last fiscal through sale of non-core assets, but was able to raise only Rs 1,800 crore. It has decided to retain the wind energy business valued at Rs 1,000 crore because of tax benefits.
Shares of the company closed at Rs 311.85, down 2.39 per cent from the previous close on the BSE.
