DLF Q2 net profit falls 94% YoY; debt swells to Rs. 26,800 crore
India’s largest realty developer DLF has reported 94% year-on-year drop in its consolidated net profit at Rs. 12.57 crore for the quarter ended September. Total income for the period also declined 21% to Rs 1,751.34 crore.
Lower sales hit the company’s half yearly performance too as net profit for April-September declined 74% to Rs 121.58 crore. Total income for the half year saw a 7% dip to Rs 3,962.58 crore, the company said in a filing on Bombay Stock Exchange.
Net debt of the company rose by Rs. 900 crore during the September quarter to Rs. 26,800 crore and the borrowing could rise further to meet construction cost of its ongoing projects amid a demand slowdown in the property market.
DLF expects to reduce its debt significantly from the proposed infusion of over Rs 13,000 crore into the company by the end of this fiscal, mainly from promoters’ stake sale to GIC. Net debt increased to Rs. 26,799 crore as on 30 September 2017, from Rs. 25,899 crore at the end of the previous quarter.