Realty major DLF Ltd on Monday reported a 15 per cent fall in its consolidated net profit to Rs 379.49 crore for the quarter ended December.
Its net profit stood at Rs 449 crore in the corresponding quarter of the previous financial year.
Total income during October-December 2021 grew marginally to Rs 1,686.92 crore, compared with Rs 1,668.22 crore in the year-ago period, according to a regulatory filing.
DLF’s net profit fell despite higher income because of a provision of an exceptional item of Rs 224 crore.
"One of the investee companies has defaulted in meeting its debt obligation mainly due to project execution delays arising out of disruption caused by the COVID-19 pandemic,” the notes of account pointed out.
The company believes that the project remains fundamentally sound and it continues to work with the relevant parties to resolve this matter.
"However, given the uncertainty involved related to the timing of the resolution, management has considered an impairment provision of Rs 224.43 crore on a best estimate basis and disclosed as an exceptional item in these consolidated financial results,” the notes added.
Net profit increased to Rs 1,094.78 crore during the April-December 2021 period, from Rs 605.23 crore in the year-ago period.
Total income rose to Rs 4,485.72 crore in the first nine months of this fiscal, from Rs 4,038.30 crore in the corresponding period of the previous year.
DLF has developed 153 real estate projects and built an area of about 330 million square feet.
It has 215 million square feet of development potential across residential and commercial segments.The group has an annuity portfolio of over 35 million square feet.