India’s largest realty firm DLF on Wednesday reported a 19% fall in its net profit, year-on-year for the January-March quarter of the last fiscal owing to high input costs. DLF’s net profit during the quarter stood at Rs 345 crore as compared with Rs 426 crore for the same period a year ago.
The revenues during the quarter increased by 35% to Rs 2,683 crore, from Rs 1,994 crore in the last fiscal.
“Though this consistent high rate of inflation has had a bearing on our financial performance, through the course of 2010-11 we have progressed well on all our key business parameters and continue our focus on enhancing execution and maximising cash flows,” said Ashok Tyagi, chief financial officer, DLF.
However, the company sounded a note of caution on RBI’s continuance with tight monetary policy. “RBI actions would continue to result in tighter liquidity environment increasing chances of a further tempering of growth,” it said.
The company has also planned to raise up to Rs 7,000 crore over the next 2-3 years from the sale of its non-core assets to cut its net debt, which stands at Rs 21,424 crore. In a presentation, DLF said it has raised the divestment target for non-core assets (including land parcels) to Rs 10,000 crore from Rs 4,500 crore earlier.