BENGALURU :
DLF Ltd, India’s largest real estate developer, on Monday reported a 15% fall in net profit to ₹379.49 crore for the quarter-ended December, compared to ₹449 crore in the corresponding period a year ago.
Total income during the October-December period grew marginally to ₹1,686.92 crore, from ₹1,668.22 crore in the year-ago period.
DLF's net profit fell on account of a provision of an exceptional item of ₹224.43 crore.
"One of the investee companies has defaulted in meeting its debt obligation mainly due to project execution delays arising out of disruption caused by the covid-19 pandemic," the notes of account mentioned.
“The company believes that the project remains fundamentally sound and it continues to work with the relevant parties to resolve this matter. However, given the uncertainty involved related to the timing of the resolution, management has considered an impairment provision of ₹224.43 crore on a best estimate basis and disclosed as an exceptional item in these consolidated financial results," according to the regulatory filing.
DLF said the housing segment continues to exhibit sustained momentum leading to strong business performance in the residential segment.
“We clocked record new sales in the quarter amounting to ₹2,018 crore, reflecting a y-o-y growth of 97%. Surplus cash generation of ₹764 crore during the quarter resulted in a marked reduction in our net debt which stood at ₹3,220 crore at the end of the quarter," the company said in a release.
On the commercial office segment, the company said the business continues to be on recovery trajectory, however, the covid resurgence might push out the recovery temporarily.
“The growth in digitization, digital transformation along with robust hiring plans for IT/ITeS companies is expected to lead the recovery across this segment," it said.
