DLF on Tuesday, August 2, reported a 12.81 per cent decline in its consolidated net profit for the first quarter ended June 30 at Rs.358.36 crore. High input cost and rising interest rate seems to have had an impact on the performance of the company.
Though net profit was down to Rs.358.36 crore for the quarter ended June 30 against Rs.411.03 crore for the corresponding period last year, it recorded a 16 per cent increase in its revenue to Rs.2,503 crore compared to Rs.2,161 crore in the first quarter of 2011-12. EBITDA was up by 5 per cent to Rs.1,168 crore.
The company’s Chief Financial Officer (CFO) Ashok Tyagi called the environment difficult to operate, yet termed the results as “stable beginning for the fiscal”. He said the successive rate hikes by the Reserve Bank of India would have a moderating effect on demand.
“We have witnessed a stable beginning for the fiscal despite the ongoing difficult environment. Given our successful launches of plotted developments, we continue our strategy of focusing on this product segment which enables us to mitigate the current inflationary environment and at the same time accelerate our cash flows. The successive hikes in interest rates by the Reserve Bank of India shall have a moderating impact on demand. While debt levels have remained similar to the previous quarter, our momentum on the non-core asset/business divestments have gathered pace and these coupled with operational cash flows will help us in moderating our current debt levels, said Ashok Tyagi.”
“Our execution commitments for the year remain on track with substantial volumes upcoming for handover to customers. This will further reduce our construction commitments and reiterate our strong brand and track record with our valued customers”, Tyagi added.
In line with its strategy of concentrating on its core business, DLF realised Rs.165 crore from divesting its non-core assets during the quarter. Debt levels have remained similar to the previous quarter, pointed out Tyagi. “Our momentum on the non-core asset/business divestments have gathered pace and these coupled with operational cash flows will help us in moderating our current debt levels”, he said.
The company recorded 2.2 million sq ft sales during the quarter, versus 1.9 million sq ft in the corresponding quarter last year. It handed over 1.9 million sq ft of area against 1.4million sq ft last year.
