Construction Industry News
On Monday, real estate giant Delhi Land & Finance Ltd (DLF) recorded a 15% drop in its consolidated net profit to Rs 379.49 crore for the December 2021 quarter, while sales bookings roughly doubled to Rs 2,018 crore, thanks to strong demand for its luxury homes.
Net profit reached Rs 449 crore in a comparable quarter last year. Total revenue rose marginally to Rs 1,686.92 crore in October-December 2021, compared to Rs 1,668.22 crore in the period a year ago, according to a regulatory filing.
DLF's net profit declined despite higher revenues due to a provision of an exceptional item of Rs 224 crore.
One of the invested companies has defaulted on its debt obligation, mainly due to uncertainties in project execution stemming from the disruption caused by the Covid-19 pandemic, the statement said.
The company believes that the project remains fundamentally sound and continues to work with the relevant parties to resolve this issue. However, given the uncertainty regarding the timing of the resolution, management has considered an impairment provision of Rs 224.43 crore based on best estimate and disclosed it as an exceptional item in these consolidated financial results.
Net profit rose to Rs 1,094.78 crore during the April-December 2021 period, 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 year, from Rs 4,038.30 crore in a comparable period last year.
In a statement, DLF told media that the company clocked record new sales of Rs 2,018 crore in the December quarter, reflecting an annual development of 97%.
The nine-month cumulative sales entries reached Rs 4,544 crore, demonstrating a robust recovery in this sector. The company continues to see sustained demand for the independent flooring in the Gurugram market and continues to attract new launches in this segment. Residential markets continue to show rising demand trends, and they expect them to continue in the long term.
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