DLF's long term strategy is to create a net debt zero development business enabling it to focus on creation of quality products and timely execution without being perturbed by the randomly oscillating market cycles.
India's largest realty firm DLF on Tuesday reported 24% rise in its consolidated net profit at Rs 163.95 crore for the quarter ended December on higher sales and one-time gain from stake sale in two projects here to Singapore's sovereign wealth fund GIC.
The company's net profit stood at Rs 131.79 crore in the year-ago period, DLF said in a regulatory filing. Income from operations rose by 44% to Rs 2,827.66 crore during the third quarter of this fiscal from Rs 1,956.72 crore in the corresponding period of the previous year.
Total revenue went up by 43% to Rs 2,981 crore in the quarter ended December from Rs 2,080 crore a year-ago. Tax expenses, including the deferred tax, rose sharply to Rs 210.74 crore during the third quarter of this fiscal from Rs 7.59 crore in the year-ago period.
DLF in a statement said that the profit includes a one- time gain on account of sale of land by DLF Home Developers to two joint venture companies formed with GIC. It also includes revision in construction budgets, primarily due to fundamental specifications upgrade and reassessment of cost to completion.
Recently, DLF received Rs 1,992 crore from GIC, thereby completing the deal to sell 50% stake each in two upcoming projects in the national capital. The company in September last year had announced the stake sale in the two projects to GIC.
Ahead of the announcement of financial results, shares of the company fell by 3.51% to close at Rs 93.35 apiece on the BSE. On promoters plan to sell 40% stake in the company's rental arm DLF Cyber City Developers Ltd, DLF said "the company is geared up to formally offer the transaction to the market and start discussions with the potential investor".
The company said that this transaction would help in creation of two distinct pure plays, one for its annuity Business and the other for its development business.
DLF's long term strategy is to create a net debt zero development business enabling it to focus on creation of quality products and timely execution without being perturbed by the randomly oscillating market cycles.
On the market, DLF said, "residential markets remain soft and outlook is expected to remain lackluster in the medium term. However, DLF Phase V in Gurgaon continues to evoke interest and clock in healthy sales." About 10 million sq ft has been delivered in the current fiscal. DLF has a land bank of 281 million sq ft, of which 37 million sq ft is under construction at the end of the quarter.
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