DLF's Rs 4.19cr loss mirrors slump in realty sector

Moneycontrol Bureau

DLF Ltd's fourth-quarterly performance mirrors the condition prevailing in the Indian real estate sector today. The realty major declared a net loss of Rs 4.19 crore on poor sales and losses booked by subsidiaries. This is in sharp contrast to the net profit of Rs 211.70 crore  in the January-March quarter.The company's  hotel and life insurance business drove it deeper into the red with a Rs 77.35-crore loss.

The total income from operations declined by 15 percent to Rs 2,225.55 crore in the fourth quarter of the  2012-13 fiscal compared to Rs 2,616.78 crore in the same period corresponding year. DLF closed trade at Rs 194.85,down Rs 11.15, or 5.41 percent, on the BSE.

The company's board has recommended a dividend of Rs 2 per share (100 percent) for the 2012-13 financial  year. For the full 2012-13 fiscal, DLF Ltd said its net profit declined by 41 percent to Rs 711.92 crore  as against Rs 1200.82 crore in the previous fiscal. Net income also declined to Rs 7,772.84 crore from  Rs 9629.38 crore in the review period.

DLF, however, said if it had continued with the previous accounting policy with respect to accrual for  timely payment rebate to customers with effect from April 1, 2012, revenues and net profit before tax for  FY13 would have been higher by Rs 78.37 crore and Rs 76.69 crore, respectively.

Meanwhile, the company said DLF Global Hospitality Ltd (DGHL) deal with Silverlink could not be closed as  per earlier timelines and has been now extended to June 2013.

"Pursuant to the terms of the share-purchase agreement, management foresees an estimated loss of Rs 65 crore which has been recorded as an impairment  of goodwill create don Silverlink consolidation in the quarter ended December 31, 2012," the company said.