DLF records 15% drop in net profit to Rs 379.49 cr in Q3 FY22

01 Feb 2022

On Monday, Real estate giant Delhi Land & Finance Ltd (DLF) registered a 15% decline in its consolidated net profit to Rs 379.49 crore for the December 2021 quarter, while sales bookings approximately doubled to Rs 2,018 crore, on robust demand for its luxury houses.

Its net profit reached Rs 449 crore in a similar quarter last year. Total revenue during October-December 2021 surged marginally to Rs 1,686.92 crore, as against Rs 1,668.22 crore in the year-ago period, as per a regulatory filing.

DLF's net profit declined despite higher revenue due to a provision of an exceptional item of Rs 224 crore.

One of the investee firms has defaulted in meeting its debt obligation primarily due to project implementation uncertainties emerging out of disruption driven by the Covid-19 pandemic, the notes of account pointed out.

The firm believes that the project remains fundamentally sound, and it continues to work with the relevant parties to fix this issue. Yet, given the uncertainty involved related to the timing of the resolution, management has considered an impairment provision of Rs 224.43 crore on a best estimate basis and revealed it as an exceptional item in these consolidated financial results.

Net profit surged to Rs 1,094.78 crore during the April-December 2021 term, from Rs 605.23 crore in the previous year.Total revenue grew to Rs 4,485.72 crore in the first nine months of this fiscal, from Rs 4,038.30 crore in a similar period of the past year.

In a statement, DLF told the media that the firm clocked record new sales in the December quarter amounting to Rs 2,018 crore, reflecting yearly development of 97%.

The cumulative sales bookings for nine months reached Rs 4,544 crore, demonstrating a robust rebound in this sector. The firm continues to observe sustained demand traction for the independent floors across the Gurugram market and continues to draw new launches in this segment. Residential markets continue to show enhancing demand trends, and they anticipate these to continue for the long term.

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Also read: Amazon in discussion with DLF to lease office space in Gurgaon

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