DLF Ltd, which builds homes, offices and shopping malls, said late on Thursday that net profit for the June quarter was 1.28 billion rupees ($21.1 million), compared with 1.81 billion rupees a year earlier.
Income from operations fell 25 percent to 17.25 billion rupees, the company said.
While Prime Minister Narendra Modi's election triumph two months ago and his promises of economic revival buoyed business confidence and India's financial markets, home buying has been slow as consumers remain anxious about the future.
Sales in DLF's home market in northern India fell 22 percent in the April-June quarter while countrywide sales rose 5 percent over the same period from a year ago, according to Mumbai-based real estate data analysis firm Liases Foras.
Founded by billionaire K.P. Singh, DLF, which is valued by the market at $5.9 billion, has been selling non-core assets to reduce its net debt, which was $3.15 billion as of end-June.
Shares in the New Delhi-based company have risen about 19 percent since the beginning of the year, but underperformed the wider real estate index that has surged 31.1 percent during the same period.
($1 = 60.5500 Indian Rupees)
DLF Q1 net profit falls 29 pc at Rs 127.77 cr
(PTI) India's largest real estate firm DLF Ltd today reported 29 per cent decline in consolidated net profit at Rs 127.77 crore for the quarter ended June on lower sales.
Its net profit stood at Rs 181.19 crore in the year-ago period.
Total income from operations fell by 25 per cent to Rs 1,725.17 crore in the first quarter of this fiscal as compared to Rs 2,314.08 crore in the corresponding period of previous year.
Share price of DLF Ltd, which has a land bank of about 300 million sq ft, declined by 0.87 per cent to close at Rs 198.40 on the BSE. Its market cap stood at Rs 35,347.40 crore.
During last fiscal, DLF had posted a net profit of Rs 646 crore over a turnover of Rs 9,790 crore.
Total income fell to Rs 1,851.6 crore in the first quarter of this fiscal from Rs 2,453.18 crore in the year-ago period, DLF said in a filing to the BSE.
DLF's profits have declined in April-June period despite lower operational expenditure, tax expenses and finance cost.
During the first quarter, total expenditure fell to Rs 1,122.70 crore from Rs 1,576.71 crore in the corresponding quarter of last fiscal.
Tax expenses fell to Rs 30.19 crore from Rs 91.28 crore, while finance cost has come down to Rs 558.10 crore from Rs 591.40 crore during the period under review.