DLF Q4 net may fall 29%, high interest costs to dent profit

Interest burden continues to be very high as in Q3 net debt increased by Rs 400 crore to Rs 20300 crore due to weak operational cash flows. Interest payment now contributes more than 80 percent of EBITDA. In Q3, interest costs was at Rs 648.2 crore compared to Rs 633 crore, up 2.4 percent Y-o-Y.

May 20, 2015 / 13:07 IST

26 Aug, 2025 12:21

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DLF's net profit is likely to fall 29 percent to Rs 156 crore in January-March quarter from Rs 219.68 crore in corresponding quarter last fiscal. Revenue is seen almost flattish with 7 percent rise at Rs 2109 crore versus Rs 1969.4 crore year-on-year, according to a CNBC-TV18 poll.

EBITDA is likely to be up 28 percent at Rs 861.5 crore compared to Rs 671.2 crore (Y-o-Y) while operating profit margin may come in at 40.8 percent from 34 percent on yearly basis.

While national capital region (NCR) market is still sluggish, DLF is expected to report good performance this quarter driven by strong pre-sales in its luxury housing projects-Crest and Camellias. Profits, however, will continue to get hit by high interest costs. Analysts polled by CNBC-TV18 say launch of Crest phase II may drive Q-o-Q improvement in earnings as it sold 100 out of 250 units. The company is likely to see pre-sales of Rs 1000 crore in Q4FY15 as against Rs 650 crore sequentially. Realisations is seen rising to Rs 20710 per square feet versus Rs 18056 per square feet, up 15 percent Q-o-Q.

Debt

Interest burden continues to be very high as in Q3 net debt increased by Rs 400 crore to Rs 20300 crore due to weak operational cash flows. Interest payment now contributes more than 80 percent of EBITDA. In Q3, interest costs was at Rs 648.2 crore compared to Rs 633 crore, up 2.4 percent Y-o-Y.