DLF Ltd, India's top real estate developer, reported a 29% fall in quarterly net profit, hit by slowing home sales in Asia's third-largest economy as high inflation and interest rates continued to deter home buyers.
DLF, which builds homes, offices and shopping malls, said late on Thursday that net profit for the June quarter was Rs. 1.28 billion ($21.1 million), compared with Rs. 1.81 billion a year earlier.
Income from operations fell 25% to Rs. 17.25 billion, the company said.
While Prime Minister Narendra Modi's election triumph two months ago and his promises of economic revival buoyed business confidence and India's financial markets, home buying has been slow as consumers remain anxious about the future.
Sales in DLF's home market in northern India fell 22% in the April-June quarter while countrywide sales rose 5% over the same period from a year ago, according to Mumbai-based real estate data analysis firm Liases Foras.
Founded by billionaire K.P. Singh, DLF, which is valued by the market at $5.9 billion, has been selling non-core assets to reduce its net debt, which was $3.15 billion as of end-June.
Shares in the New Delhi-based company have risen about 19% since the beginning of the year, but underperformed the wider real estate index that has surged 31.1% during the same period.