DLF Q2 net profit falls y-o-y

Stocks

oi-Monika

By Monika Nihalani

Published: Friday, November 11, 2011, 15:08 [IST]

DLF, India's biggest real estate developer posted a 11% fall in its consolidated net profit for the quarter ended September 30. It's profit after tax (PAT) stood at Rs 372 crore compared to Rs 418 crore corresponding quarter previous year.

The profit lowered during the quarter as compared to previous year on account of high interest rates, muted sales, and rising cost of the raw material.

The company's sales volumes were impacted also due to delay in the approvals of the new launches, so there was subsequent decline in the number of new launches.

The company's debt levels have also been increased during the quarter and company said in a statement that it has progressed well with its non-core divestment program so proceeds from these sales which are expected in current quarter would help to minimize its debts.

“The Real Estate industry continues to witness a challenging economic environment with customers deferring their buying decisions due to higher interest rates coupled with a decline in the number of new launches, leading to lower sales volumes in the quarter,” quoted in a statement.

While its net profit was up by 4% on quarterly basis from Rs 358 crore previous quarter to Rs 372 crore.

DLF's consolidated revenues rose marginally by 2% from Rs 2,520 crore a year ago to Rs 2,577 crore for the quarter ended September 30.

It's EBITDA grew by 13% and stood at Rs 1,216 crore during the quarter.

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