India's largest realty firm DLF today reported a 49 per cent drop in consolidated net profit to Rs 145.29 crore in the third quarter of this fiscal due to one-time provision of loss related to the settlement with DDA.
It had posted a net profit of Rs 284.8 crore in the year ago period.
DLF also announced appointment of three new directors on the board, including Rajeev Talwar who is currently group executive director.
Income from operations rose by 57 per cent to Rs 2,058.42 crore during October-December period of this fiscal against Rs 1,310.04 crore in the corresponding quarter of previous year, DLF said in a filing to the BSE.
Total income rose by 13 per cent to Rs 2,590.20 crore in the quarter ended December from Rs 2,291.25 crore in the year ago period.
Profits have dipped because of provision of losses of Rs 411 crore in the books of account related to its settlement with the Delhi Development Authority (DDA) following scrapping of a project at Dwarka in the national capital.
DLF recently announced a final settlement with DDA in the Dwarka Convention Centre project. It received a refund of Rs 675.81 crore from DDA as full and final settlement, after forfeiture of 25 per cent of the earnest money.
"Though, the transaction was completed subsequent to the quarter end, a foreseeable loss of Rs 411.39 crore is recorded and disclosed as an exceptional item in these consolidated financial results," DLF said in the filing.
In July 2007, DLF had bagged a Rs 6,000 crore contract from DDA for constructing the convention and exhibition centre at Dwarka. However, the project got scrapped. DLF will now return 35 acres of land to DDA that it had got for Rs 900 crore.
Profits also fell due to increase in finance cost to Rs 633 crore during the third quarter of 2013-14 fiscal from Rs 581 crore in the corresponding quarter of previous year.
Meanwhile, DLF announced appointment of three directors on its board, which also approved re-appointment of Rajiv Singh as Vice-Chairman for a period of 5 years.
The board approved appointment of Ved Kumar Jain as additional director in capacity of non-executive independent director. He is the former President of the Institute of Chartered Accountants of India (ICAI).
DLF board approved appointment of Mohit Gujral and Rajeev Talwar as whole-time director for a period of 5 years. Gujral joined the company in 2010, while Talwar, an IAS Officer of 1978 batch, joined DLF in 2006.
"The appointments will allow DLF to further strengthen its management and leverage the vast experience of new directors in the current competitive business environment," DLF said in a statement.
