DLF records 45% fall in Q3 net on low sales; raises Rs 1,200 crore
The Dow Jones industrial average closed down 89.23 points, or 0.7 percent, at 12,801.23. The broader Standard & Poor's 500 finished down 9.31 points to 1,342.64. It was the first losing week for S&P this year.
The country's largest realty firm DLF today reported 45 per cent decline in consolidated profit after tax at Rs 258 crore for the third quarter ended December, on account of lower than expected sales.
The company had posted PAT of Rs 466 crore in the October-December quarter of last financial year 2010-11, DLF said in a statement.
The Q3 consolidated revenue also fell by 8 per cent to Rs 2,396 crore, from Rs 2,594 crore in the year-ago period.
"With macro environment continuing to remain unfavourable with high interest rates, commodity and labour cost inflation, the company's strategy shall require patience and caution to execute.
"Given these uncertainties, the company expects longer than anticipated time for its initiatives to take fruition," DLF said.
Despite the company continuing its focus on launching plotted land developments, premium housing, divestment of non-core assets and reduction of debt, DLF may take few more quarters to regain full momentum, it added.
During the quarter, the company raised Rs 1,200 crore through sale of two non-core assets -- Noida IT Park and Pune SEZ, the statement said.
Besides, it sold 3.30 million sq ft of spaces during the third quarter of this fiscal.
The shares of the company today closed 0.88 per cent down at Rs 230.70 apiece on the BSE.