DLF shares gain 7% post higher Q1 revenues on Crest project

Moneycontrol Bureau

DLF shares gained nearly 7 percent in early trade Tuesday on higher-than-expected revenues and fall in debt during April-June quarter.

India’s largest realty firm reported 38 percent fall in the consolidated net profit at Rs 181.19 crore for quarter ended June on higher expenses year-on-year.

However, income from operation increased by 5 percent to Rs 2,314.08 crore in the first quarter of this fiscal compared with Rs 2,197.71 crore in the corresponding period of last fiscal on strong gross sales booking of Crest.

Analysts on an average had expected it to report net profit of Rs 181.2 crore on revenues of Rs 2,314 crore.

Earnings before interest, tax, depreciation & amortisation (EBITDA) slipped 14 percent to Rs 916 crore and operating profit margin dropped to 39.5 percent in June quarter from 48.5 percent in a year ago period.

The board re-appointed KP Singh as Chairman for a period of 5 years with effect from October 1, 2013 and co-opted Rajiv Krishan Luthra and Pramod Bhasin as additional Directors in capacity of Non-executive Independent Directors, DLF said in a filing to the BSE.

Luthra is Founder and Managing Partner of Luthra & Luthra Law Offices while Pramod Bhasin was the former President and Chief Executive Officer of Genpact.

DLF’s net profit fell in the first quarter of this fiscal mainly due to 20 percent increase in the total expenses to Rs 1,576.71 crore from Rs 1,309.26 crore in the year-ago period.

“Although profit is lower than the year-ago period, it has jumped sharply from a loss of Rs 4 crore loss in fourth quarter of last fiscal,” DLF Group CFO Ashok Tyagi told PTI.

During the quarter, sales value of bookings stood at Rs 2,430 crore in Q1 as against Rs 3,800 crore in FY13, but on quarter-on-quarter basis, sales bookings jumped 95 percent from Rs 1,240 crore.

Average realisation increased to Rs 13,425 per square feet (psf) in Q1FY14 from Rs 6,231 psf in Q4FY13, but sales bookings dropped 10 percent Q-o-Q to 1.81 million square feet versus 2 million square feet.

Bookings were boosted by phase V projects i.e The Crest in Gurgaon in Q1. Bookings are also likely to increase further by Camelia. It sold 0.83 million square feet area of Crest at an average price of Rs 17500 per sq ft while it received bookings for 0.25 million square feet area of Camelia at Rs 21500 per square feet.

Besides Crest launch, DLF achieved sales in Lucknow, Panchkula, New Chandigarh and Bangalore.

The realization from divestment of non-core assets stood at Rs 215 crore and proceeds from the IPP at Rs 1863 crore during the quarter, helping the company in reducing debt. The net debt fell to Rs 20,369 crore at the end of the June quarter from Rs 21,731 crore as on March 31, 2013.

“The company reiterates its annual guidance of net debt reduction to Rs 17,500 crore by end of FY14,” DLF said. During first quarter, DLF said that its joint venture firm DLF Pramerica Life Insurance posted a loss of Rs 20 crore, while hotel business reported a profit of Rs 10.44 crore.

At 09:45 hours IST, the stock rose 4.73 percent to Rs 145.10 on the BSE.

(With inputs from PTI)