India's largest realty firm DLF reported a 9 per cent increase in its consolidated net profit at Rs 109.06 crore (Rs 1.09 billion) for the second quarter of this fiscal on account of higher sales and lower expenses.
Its net profit stood at Rs 100.05 crore (Rs 1 billion) in the year-ago period.
Income from operations rose by 3 per cent to Rs 2,013.15 crore (Rs 20.13 billion) during July-September quarter from Rs 1,956.09 crore (Rs 19.56 billion) in the corresponding period of the previous year, DLF said in a filing to the BSE.
However, total income fell to Rs 2,135.59 crore (Rs 21.35 billion) for the quarter ended September 30, 2014 from Rs 2,224.61 crore (Rs Rs 22.24 billion) in the year-ago period.
DLF's net profit rose on the back of fall in operational expenses to Rs 1,356.52 crore (Rs 13.56 billion) from Rs 1,527.22 crore (Rs 15.27 billion) in the year-ago period. Tax expenses fell to Rs 43.06 crore (Rs 430.6 million) from Rs 85.47 crore (Rs 854.7 million) during the period under review.
The company's share price closed at Rs 138.90 apiece on the BSE, down by 0.57 per cent from its previous close. Its market cap stood at Rs 24,751 crore (Rs 247.51 billion). Promoters have 74.91 per cent stake in the company.
DLF is into development of housing, office and retail properties. It has a huge land bank with potential developable area of over 300 million sq ft, of which about 60 million sq ft is under construction.
"With the policy and reform initiatives taken by the Government we see early signs of GDP growth which should result in the revival of consumer demand," DLF said in a statement
"The company is fully geared up to ride the up-cycle with its inventory of finished, valued in excess of Rs 4,000 crore or Rs 40 billion (approximately), unsold inventory of launched projects under construction worth Rs 13,000 crore or Rs 130 billion (approximately) and future pipeline of projects worth Rs 7,000 crore or Rs 70 billion (approximately), for which all approvals are in place," the statement said.
Despite tough market conditions for the sector since the global financial crisis, the company has been able to create valuable rental assets, it said.
Given the recent notifications on the REITs, it has become incumbent upon the company to re-evaluate its strategic path and options to drive sustainable, long term growth and development of the rental business, DLF said.
"The company is committed to creating one or more sizeable REIT platform either independently or in partnership with strategic/financials partners not only to harness the growth in the market but also to unlock/part monetise the company’s investment," the statement added.
