DLF net crumbles 79% to Rs 396 cr

DLF net crumbles 79% to Rs 396 cr
The Economic Times, July 31, 2009, Page 10

Our Bureau NEW DELHI

DLF, the country’s largest property firm, has reported a 79% decline in its net profit for the quarter ended June 2009 to Rs 396 crore on poor demand for homes, offices and shops as well as higher interest costs.

The company, however, said the activity in the real estate sector has picked up, indicating that the worst may be over. “The construction activity has gained momentum and response to new launches has been encouraging,” DLF vice chairman Rajiv Singh said.

DLF said it had sold 2.5 million sqft of home space in Delhi and Bangalore in June quarter.

The company’s sales were down 57% to Rs 1,650 crore for the quarter. The results are in line with market expectations.

An ET NOW poll of 15 analysts expected company’s profit at Rs 400 crore and sales at Rs 1,452 crore. The company said it was continuing with its deleveraging exercise and had cut down its net debt by Rs 2000 crore. This has resulted in its debt-equity ratio going down to 0.5 from 0.6 as on March 31. The company had a net debt of Rs 14,000 crore at the beginning of the June quarter, causing its interest cost to shoot up 432% year-on-year to Rs 287 crore in the quarter. DLF plans to further reduce its debt-equity ratio to 0.3 by the end of this fiscal.