India's largest real estate company DLF has posted a 10.26 per cent increase in net profit at Rs 284.8 crore for the third quarter ended December 2012. It is after a gap of two years that the realty major's quarterly profit is showing signs of improvement.
The company had recorded a net profit of Rs 258.3 crore in the year-ago period. Total income fell 4.3 per cent to Rs 2,291.2 crore during the quarter under review from Rs 2,396 crore in the third quarter of FY12.
On a standalone basis, DLF posted a net loss of about Rs 42.1 crore, compared with a net profit of Rs 355.7 crore in the third quarter of FY12. Total income declined to Rs 664.5 crore during the quarter against Rs 1,236 crore in the quarter ended December 2011, the company said in an announcement to the Bombay Stock Exchange. The shares of the company were down 1.76 per cent today and closed at Rs 253.95.
The results have taken into account the one-time' profit from the sale of NTC Mill land in Mumbai and accounted for certain additional costs/rebates to be incurred in the future on existing projects, including potential loss on the sale of Silverlink Resorts (Aman Resorts), the company said in a statement. It also reflects the deferment of recognition of revenues under the new accounting policy for new launches.
The quarter saw reduction in the net debt by Rs 1,870 crore. With this, the company's net debt stands at Rs 19,350 crore as of December 31, 2012, down from Rs 21,220 crore in the previous quarter. It will continue to make investments in new assets with a capex/land of about Rs 250 crore during the quarter.
DLF has been trying to reduce its mounting debt by selling non-core assets. It sold its stake in luxury hotel group Aman Resorts and land in Mumbai. The company has already sold a part of its wind energy business, and is expected to dispose the remaining soon.
In addition, it will sell its stake in some land parcels in Mumbai and a few hotels.
The company is focused on creating a business model of highly stable and predictable earnings, cash flows and long-term value creation. "In the current macro environment, DLF will continue with the current volume of launches, development and leasing," said the statement.