DLF scrip rises 4.04 percent on healthy Q4 earnings

Indo Asian News Service

Mumbai, May 30 (IANS) The scrip of India's real estate development major DLF gained 4.04 percent on back of healthy earnings in the fourth quarter of the last fiscal ended March 31.

In the initial trading hours at the Bombay Stock Exchange (BSE) the company's stocks gained as much as 4.04 percent at Rs.212 from its previous close of Rs.203.75.

The scrip's gain stood at 1.94 percent or 3.95 points at Rs.207.70 around 2.00 p.m.

The company posted a net profit of Rs.220 crore for the quarter ended March 31, 2014 as against a net loss of Rs.4 crore during the like period of the previous fiscal owing to the sale of international luxury resort chain Amanresorts.

Higher steel and cement prices had dented the margins of the company in the previous year. In a turnaround, the company further reported an increase of nine percent in its consolidated revenue at Rs 2,522 crore in the period under review from Rs.2,319 crore in the corresponding quarter of 2012-13.

For year-ended March 31, 2014 the company reported a consolidated revenues growth of eight percent at Rs.9,790 crore from Rs.9,096 crore in previous financial year.

The company's EBIDTA (earnings before interest, taxes, depreciation, and amortization) increased marginally by one percent at Rs.3,977 crore from Rs 3,948 crore. However, net profit declined by 9.26 percent and stood at Rs 646 crore from Rs 712crore in the previous fiscal.

"In the year gone by, due to slowdown in the overall economy, demand for company's real estate products were severely impacted resulting in moderate sales vis-à-vis the target as articulated last year," the company said.

The company forecasted that the new government will kick start economic growth which will, within 24 months, deliver significant improvement in income generation for all segments of the society.

"Given this scenario, the company expects an up-tick in consumer demand for housing in the second half of the FY15. The company's diverse portfolio of land bank allows it to participate in governments efforts to provide housing for all segments of the society in the shortest possible time," the company said.

"With increased economic activity, the company's leasing business shall also benefit from greater demand in the office and retail businesses."