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Informist, Friday, Jan. 24, 2025

By Rajesh Gajra

NEW DELHI – The real estate behemoth DLF Ltd. missed Street expectations on its top line for the December quarter but beat analysts' estimates on its bottom line comfortably. The company reported a 0.5% on-year increase in its consolidated revenue to INR 15.29 billion in the December quarter. This was much below analysts' average estimate of INR 17.86 billion. The near-flat growth was a big climb-down from the 47% on-year revenue growth recorded in the September quarter.

The consolidated net profit of DLF, however, jumped up 61% on year to INR 10.59 billion in Oct-Dec, significantly above the Street estimate of INR 8.06 billion. The growth was, however, lower than that of the previous quarter when the net profit had risen 122% on year to INR 13.81 billion.

The company's net profit growth in the December quarter was aided by a 71% on year increase in other income to INR 2.09 billion. On the other hand, the major operating cost element – cost of land, plots, constructed properties, and development rights – rose 11.2% on year to INR 7.38 billion. Staff costs went up by 6.3% to INR 1.34 billion while finance costs increased by 12% on year to INR 939 million. Other expenses jumped nearly 17% on year to INR 2.57 billion.

An exceptional cost of INR 3.02 billion was incurred by DLF in the December quarter, which dragged the bottom line. The footnote to the accounts said this amount was "indemnified by the company pursuant to share purchase and shareholders agreement in respect of the income-tax liability" being settled for past assessment years by its joint venture company DLF Cyber City Developers under the Vivad se Vishwas tax settlement scheme of the government. There was no such exceptional cost item in the same quarter a year ago.

In tax-related items, the company reversed a tax liability of INR 9.32 billion in the December quarter on account of a change in the effective tax rate on long-term capital gains. On the other hand, it incurred a tax cost of INR 6.62 billion in respect of the settlement of income tax litigations for the past financial years.

Sequentially, the company's top line was down 22.6% in the December quarter, making it the second-worst performance in 14 quarters, past data showed. The only other quarter in the last 14 quarters, the sequential growth was worse was in the June quarter of the current financial year, when it had fallen by 36%. Similarly, the sequential fall of 23.3% in net profit was the second lowest in 14 quarters, next only to the June quarter's decline of 30%.

DLF's consolidated net profit in Apr-Dec rose 71% on year to INR 30.85 billion and revenue from operations increased 13.4% to INR 48.66 billion.

On Friday, shares of DLF ended 2.8% down at INR 695.25 on the National Stock Exchange.  End

Edited by Saji George Titus

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