DLF Q1 profit falls by 58% to Rs 109 crore YoY

DLF Q1 profit falls by 58% to Rs 109 crore YoY

MP Birla Group flagship company Birla Corporation on Saturday reported a 54 per cent decline in its consolidated net profit to Rs 43.21 crore for the first quarter ended June 30 as compared to Rs. 94.44 crore for the same period a year ago.

Its net profit stood at Rs 261.85 crore in the year-ago period, the company said in a regulatory filing.

DLF also informed that the transaction for sale of compulsorily convertible preference shares (CCPS) in its rental arm DLF Cyber City Developers (DCCDL) is in advanced stages of discussion.

In March, DLF promoters K P Singh and family had entered into an exclusivity pact with Singapore's sovereign wealth fund GIC for the stake sale.

In February past year, the company had signed a definitive share purchase agreement with Reliance Infrastructure for acquisition of its entire cement business for an enterprise value of Rs 4,800 crore. "The company expects that sector would achieve normalcy over next 2-3 quarters". "The Company shall have a healthy pipeline of finished inventory for sale in foreseeable future when the demand returns", it said.

Prices in North India, another major market of the company, remained subdued and sharp increase in road freight and fuel prices put pressure on margins, but this was partly compensated by the performance in Eastern markets, which witnessed an upswing in demand. Given the complexity of issues related to the transition to the new regime of RERA and the goods and service tax (GST), new sales booking shall get deferred for at least a quarter, DLF said.