Fall in home sales led DLF, India’s largest real estate developer by market capitalisation, to post a 28% decline in its consolidated net profit to R100 crore for the quarter ended September, missing analyst estimates. The company had recorded R139 crore of consolidated net profit in the corresponding quarter last year.
In a late evening announcement on Wednesday, DLF said that the company’s total income grew by a mere 3% to R2,225 crore, against R2,157 crore in the July-September period of last year, primarily aided by other income, which more than doubled to R269 crore during the quarter, against R117 crore last year. However, company’s sales dropped by 4% to R1,956 crore from R2,040 crore last year.
The profit fell short of analyst expectations of R140 crore, according to Thomson Reuters.
“In the current economic and high interest rate environment, the company expects a slow absorption of product in the market,” DLF said.
Earnings before interest, depreciation, tax and amortisation remained flat at R863 crore in the quarter ended September, against R864 crore crore last year. Ebitda margins of the company declined by 100 basis points to 39%.