The country’s biggest real estate developer, DLF, is planning to focus on building luxury homes and continue selling non-core assets in a bid to reduce debt. The company said on May 30 as it announced a 39 percent drop in net profit in the fourth-quarter. Delhi-based DLF, which is into the homes, offices and retail segment, is among several real estate developers trying hard to cut debt and thereby improve profitability as high interest costs and a faltering economy weigh on balance sheets.
The company in a statement issued on May 30 said, "We expect the current economic and business environment will continue to stay challenging for the next few quarters."
The Delhi-based developer reported a consolidated net profit of 2.12 billion rupees ($37.77 million) for the quarter ended March 31. The net profit was 3.44 billion rupees a year ago.
The real estate developer’s revenue was down about 2 percent at 26.2 billion rupees.
Analysts on average expected the company to post net profit of 2.8 billion rupees on revenue of 23.5 billion, according to Thomson Reuters I/B/E/S.
However the main irritant of the company is its $4.32 billion debt as of December 2011.
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