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DLF ends 1.66% up after SC rejects Sebi's plea on rental arm stake sale

The stock surged after DLF reported a 21 per cent increase in its consolidated net profit at Rs 131.50 crore for the quarter ended September on lower expenses.

Photo: Reuters Photo: Reuters

Shares of DLF surged over 4 per cent after Supreme Court rejected the market regulator SEBI's plea to prevent DLF from selling stake in its rental arm.

The ruling came a day after India's biggest listed property developer posted a 21 per cent jump in quarterly profit at Rs 131.50 crore on lower costs even as home sales are slow to pick up in a recovering economy.

The stock ended 1.66 per cent higher after hitting an intraday high of Rs 125.60, up 4.53 per cent on the Bombay Stock Exchange (BSE).

The realty major's net profit stood at Rs 109.06 crore in the year-ago period.

However, income from operations fell by 7 per cent to Rs 1,865.49 crore during July-September quarter of this fiscal from Rs 2,013.15 crore in the corresponding period of the previous year.

Total expenses fell to Rs 1,071.13 crore from Rs 1,356.52 crore during the period under review.

On a standalone basis, DLF posted a net profit of Rs 227 crore for the quarter ended September as compared to Rs 220.74 crore in the year-ago period.

Total income rose to Rs 1,092.95 crore in July-September period of the 2015-16 financial year from Rs 1,005.91 crore in the corresponding period of the previous year.

Recently, DLF sold about 50 per cent stake in its housing project at central Delhi for about Rs 2,000 crore.

Last month, the company's board decided that DLF promoters-KP Singh family-will sell their 40 per cent stake in the company's rental arm DLF Cyber City Developers Ltd (DCCDL).

The proposed deal is estimated to be valued at around Rs 12,000 crore.

Promoters would re-invest a significant part of the amount realised from the proposed sale in DLF Ltd, which in turn would utilise this fund to trim its debt that stood at more than Rs 21,000 crore as on June 30.

(With inputs from PTI)