DLF profit crumbles 77%

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New Delhi: The country’s largest real estate developer, DLF, on Thursday registered a 77.28% decline in net profits at Rs 439.74 crore for the second quarter ended September 30, 2009. The company had posted a net profit of Rs 1,935.35 crore in the corresponding period of the previous year.

DLF also posted a 52.86% dip in its quarterly revenues at Rs 1,810 crore. The company had registered revenues of Rs 3,840.16 crore in the corresponding period of the last year. Further, it registered EBIDTA of Rs 973 crore, which was down 58% from Rs 2,313 crore recorded in the previous year.

However, net profit of the company rose 11% from the Rs 396 crore the company posted in the first quarter of the current fiscal. Also, consolidated revenues were up 3.6% from the Q 1 figures of Rs 1,746 crore.

A statement issued by the company highlighted that the company was focusing on reducing the debt component, a problem plaguing all real estate developers across the country. DLF sold non-core assets and land parcels to de-leverage its balance sheet, realising Rs 550 crore during the quarter and a cumulative amount of Rs 1, 064 crore until now.

DLF vice-chairman Rajiv Singh said, “We remain committed to de-leveraging the balance sheet and actions on sale of non-core assets are currently under way.”

Highlighting that the real estate industry was recuperating, as demand recovery was well on its way, the company noted that it had a total developable area of 432 million square feet. As much as 49 million square feet of projects area was under construction at the end of the second quarter and that the company had begun construction on approximately 6.5 million square feet during the quarter

Commenting upon the company’s outlook, the statement added, “for better integration and strengthening execution, DLF is buying out Laing O’ Rourke’s stake in DLF– LOR JV and would continue to offer value products across product spectrum pan-India, remain focused on delivery and on sale of non-core assets”.

Singh further noted, “The second quarter of the fiscal carried forward the momentum set during the first quarter. As demand recovered, sales in homes have picked up considerably. Keeping in line with this pick up in demand, we will continue to launch a mix of attractive products across locations and generate buyer interest by providing excellent locations and superior product specifications at the best price.”