The country’s largest real estate developer DLF on June 4 reported a net loss of Rs 1,860 crore for the quarter ended March 31 due to reversal of deferred tax assets (DTA) as it adopted a lower tax rate.
"In view of COVID-19, the company has undertaken certain provisions to reflect changes in the carrying value of some of its assets and investments. This has led to a one-time, exceptional provision (net of taxes) of Rs. 272 crore," the company said in a statement.
The management said the novel coronavirus pandemic had led to an industry-wide short-term recalibration of demand and expects some semblance of normalcy to return by the December quarter.
On the COVID-19 pandemic, it noted that it has led to industry-wide short-term recalibration of demand. “While the long-term impact and full extent of this crisis remain to be seen, the company retains a positive outlook for the long term on account of its healthy balance sheet, strong brand image and unwavering commitment to quality. The group has met all its stakeholder commitments. The company has not availed any moratoriums or deferments on its debt obligations,” it said.
The company said it has sufficient liquidity to sail through these uncertain times.
As for rental collections, the statement said that DLF has observed sustained success in office rental collections. It has provided comprehensive business continuity support to all stakeholders and continues to receive positive feedback from its tenants.
“Owing to the extended lockdown, malls across the country have not been operational and this has led to some short-term pain for the tenants. We continue to maintain a connect with all our retail partners, supporting them through these uncertain times. With opening of the malls expected in June, our focus remains safety, hygiene and well-being of our customers, tenants, and teams,” it said.
DLF has ensured that it remains in the unique position to recommence work as soon as lockdowns are lifted. Consequently, the company has not lost any time beyond the mandatory lockdown period in its project commitments, it said.
“We anticipate that some semblance of normalcy may return by Q3 FY21, whereby players with strong operational expertise and financial resilience will continue to gain foothold,” the statement said.
The firm had posted a net profit of Rs 436.56 crore in the year-ago period, the company said in a regulatory filing. Total income fell to Rs 1873.8 crore as against Rs 2,660.95 crore in the corresponding period of the previous year.
For FY20, DLF reported a net loss of Rs 583.19 crore as against a net profit of Rs 1,319.22 crore in FY19. Total income fell to Rs 6,884.14 crore against FY20 from Rs 9,029.41 crore in the preceding year.