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The country’s largest real estate firm, DLF, has posted a nine per cent decline in its consolidated net profit to Rs 132 crore for the quarter ended December, owing to low sales and higher finance cost.
It had a profit of Rs 145 crore a year ago.
The finance cost increased to Rs 648 crore from Rs 633 crore a year ago.
The income from operations fell by five per cent to Rs 1,957 crore for the quarter ended December from Rs 2,058 crore a year ago.
The earnings before interest, taxes, depreciation, and amortisation (Ebitda) were unchanged at Rs 918 crore, compared with a quarter ago.
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DLF also reported a decline in its other income to Rs 123 crore during the December quarter from Rs 532 crore in the year-ago period.
The company said it had witnessed continued interest from users in the super-luxury and luxury segments.
“We expect the sales volume in the residential segment to reach normal volumes in 12 to 18 months. The rental business, a leading indicator of demand, continues to grow at the targeted pace,” DLF said.
A further reduction in interest rates will lead to better gross domestic product growth rates, leading to more demand in both the residential and commercial segments of real estate. A cut in interest rates after the Budget is expected.
The company, which has challenged an order of fair-trade regulator Competition Commission of India (imposing a penalty of Rs 630 crore) in the Supreme Court, is awaiting the outcome. It has deposited Rs 225 crore with the court and will deposit the balance amount in monthly instalments of Rs 75 crore each, with the last installment of Rs 30 crore on July 15. The appeal is listed for final arguments on February 11.
