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DLF net profit falls 49% in December quarter

PTI     February 14, 2014

India's largest realty firm DLF on Friday reported a 49 per cent fall in consolidated net profit to Rs 145.29 crore in the third quarter of this fiscal hit by one time provision related to the settlement with DDA.

It had posted a net profit of Rs 284.8 crore in the year ago period.

However, income from operations rose by 57 per cent to Rs 2,058.42 crore during October-December quarter of this fiscal against Rs 1,310.04 crore in the corresponding quarter of previous year, DLF said in a filing to the BSE.

Total income rose to Rs 2,590.20 crore in the quarter ended December from Rs 2,291.25 crore in the year ago period.

Profits have also dipped due to increase in finance cost to Rs 633 crore during the third quarter of 2013-14 fiscal from Rs 581 crore in the corresponding quarter of previous year.

DLF has made a provision of losses of Rs 411 crore in the books of account related to its settlement with the Delhi Development Authority (DDA).

DLF recently announced a final settlement with DDA in the Dwarka Convention Centre project. It received a refund of Rs 675.81 crore from DDA as full and final settlement, after forfeiture of 25 per cent of the earnest money.

"Though, the transaction was completed subsequent to the quarter end, a foreseeable loss of Rs 411.39 crore is recorded and disclosed as an exceptional item in these consolidated financial results," DLF said in the filing.

In July 2007, DLF had bagged a Rs 6,000 crore contract from DDA for constructing the convention and exhibition centre at Dwarka. However, the project got scrapped. DLF will now return the 35 acre land that it had got from DDA for Rs 900 crore to develop this project.

DLF said the board has approved re-appointment of Rajiv Singh as Vice-Chairman for a period of five years with effect from April 9, 2014.

The board approved appointment of Mohit Gujral and Rajeev Talwar as whole-time director for a period of five years.

Gujral joined the company in 2010, while Talwar, an IAS Officer of 1978 batch, joined DLF in 2006.

"The company looks forward to the contribution of Mr Gujral and Mr Talwar to the strategisation and implementation of the company's business plans," DLF said.

The board also approved appointment of Ved Kumar Jain as additional director in capacity of non-executive independent director.

Jain is the former President of the Institute of Chartered Accountants of India (ICAI) and was on the Board of Governors of the Institute of Corporate Affairs of the Ministry of Corporate Affairs.

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