Real estate major DLF on Tuesday reported a 46% fall in its consolidated net profit for the quarter ended December at Rs 98.14 crore on lower sales and higher finance costs.
The company had posted a net profit of Rs 182.11 crore in the same quarter a year ago.
“The performance in the last quarter was subdued as markets adjusted itself to new paradigm initiated by demonetisation move,” DLF said in a stock exchange filing.
“While demonetisation is extremely positive for the company and the industry, it has had a short-term negative impact on secondary sales, which in turn has impacted primary off-take. The company expects this period of adjustment may continue for next few quarters till the time secondary market stabilises and customers start to purchase new products,” it added.
DLF’s income from operations fell 30% to Rs 2,057.92 crore in the quarter in consideration, from Rs 2,949.54 crore in the corresponding period of the last fiscal.
Finance costs rose to Rs 758.64 crore during the period in question, from Rs 670.6 crore in the third quarter of last year.
Instead, tax expenses in the December quarter fell sharply to Rs 51.58 crore from Rs 238.88 crore.
DLF has a net debt of over Rs 20,000 crore and its promoters propose to reduce this leverage by selling 40% stake in DLF Cyber City Developers Ltd (DCCDL).
“In respect of DCCDL CCPS transaction, the discussion with shortlisted investors is at an advanced stage and shall be presented to Committee of Independent Directors for their evaluation and final decision,” a DLF release here said.