The country's largest real estate organisation DLF on Thursday said that it registered a drastic 93 per cent drop in its net profits during the January-March quarter this year compared to the same period a year ago.
Amid an ongoing economic slowdown that has made buyers cautious of spending, the company recorded a dismal net profit of Rs 159 crore during January-March, 2009 as against Rs 2,177 crore it generated during the same period last year when the sector was booming.
DLF registered total revenue of Rs 1,351 crore during the quarter this year, down 69 per cent from Rs 4,372 crore it registered during the same period in 2008.
"In a tough economic environment over the last quarter, the company saw demand evaporate in all segments of real estate business," DLF said in a statement.
On an annual basis, DLF's revenues declined 28 per cent and profits dropped by 41 per cent from last financial year. The company said that its consolidated revenues for the year ending March 31, 2009 were Rs 10,541 crore.
"Real estate sector bore the brunt of instability and loss of confidence in the local economic environment for last 6 months. This has, hopefully, stabilised and in line with our earlier projections, real estate sector should start witnessing recovery from third quarter onwards," Rajiv Singh, vice chairman, DLF Limited said in a statement.