DLF net down over 20%

Leading real estate developer DLF posted a net profit of Rs 172 crore for the quarter ended March 2015, a drop of more than 20 per cent from Rs 220 crore in the same period last year. The company's consolidated revenue declined 17 per cent to Rs 2,101 crore from Rs 2,522 crore in the fourth quarter of the financial year 2014.

For the full financial year 2014-15, the company has shown a net profit of Rs 540 crore, down 16 per cent from Rs 646 crore in the previous year. The revenue has also dipped 17 per cent to Rs 8,168 crore for FY15 from Rs 9,790 crore in FY14.

"High interest rates and consequent low consumer demand have adversely impacted the real estate sector in the country," DLF said in a statement. But the company witnessed enthusiastic response for its luxury segment products in Gurgaon, it added. Compared with residential business, the businesses of leasing offices and retail malls have shown better traction and growth, according to the company.

DLF, which had a net debt of Rs 20,336 crore as of December 2014, is in talks with strategic investors for setting up joint ventures for the residential business. The move, through DevCo that manages residential business of the company, is meant to help the company keep its debt at manageable levels. "This will enable the company to unlock some of the embedded value in land today itself by sharing future financial returns with the investors," it said.

DLF Ltd