DLF Limited has recorded consolidated revenues of Rs 2,577 crore for the quarter ended September 30, 2011, an increase of 2% from Rs.2,520 crore in Q2 FY11. EBIDTA stood at Rs.1,216 crore, an increase of 13% as compared to Rs.1,080 crore in the corresponding period last year. Net profit was at Rs.372 crore compared to Rs.418 crore in Q2FY11. The non-annualised EPS for the quarter was Rs.2.19.
For H1, the Company recorded consolidated revenues of Rs.5,080 crore , an increase of 9% from Rs.4,681 crore in H1 FY11. EBIDTA stood at Rs.2,386 crore, an increase of 9% as compared to Rs.2,191 crore in the corresponding period last year. Net profit was at Rs.731 crore compared to Rs.829 crore in H1 FY11.
The Real Estate industry continues to witness a challenging economic environment with customers deferring their buying decisions due to higher interest rates coupled with a decline in the number of new launches, leading to lower sales volumes in the quarter. The Company too witnessed muted sale volumes as its previous product offerings received a strong customer response and it did not have much unsold inventory. Sales volumes of the Company were further impacted by the delay in the approvals of the new launches.
The Company has progressed well with its non-core divestment program with 2 FSI land sale transactions under closure and select transactions for sale of commercial assets at an advanced stage. Proceeds from these are expected in the current quarter and would help in moderating the Company’s current debt levels which have increased in Q2; owing largely to deferment of receipts from the afore mentioned transactions from Q2 to the current quarter and the bunching up of some payments that normally fall due in the September quarter.
The Company expects H2 FY 12 to witness a stronger operational performance both in terms of a scale up in launches in the plotted and group housing segments and deliveries of its projects across the cities of Gurgaon, Chennai, Cochin, etc. Simultaneously, it expects the momentum on the non-core divestment plan to continue with increasing traction in the proposed divestment of its hospitality assets which would further help in moderation of its debt levels. With strategic capital expenditures being undertaken on improving the quality of its land bank and the build out of select commercial and infrastructure assets, the Company is well positioned to capitalize on the growth opportunities as and when the demand scenario revives.
