DLF Limited, India’s largest real estate company, said on Thursday its consolidated net profit fell 5 percent to 4.18 billion rupees for the second quarter as compared to 4.4 billion rupees for the same quarter last year.
Total income has increased to 25.20 billion rupees for the Q2 as compared to 18.10 billion rupees to the same quarter last year.
EBIDTA increased 11 percent to 10.80 billion rupees as compared to 9.73 billion rupees in the corresponding period last year. The non-annualised EPS for the quarter was 2.46 rupees.
The decline in EBIDTA margins from 51 percent to 42 percent is a temporary drop, owing to variation in the product mix, said the company in a statment.
The company expects that its strategy of pan-India offerings of residential products shall yield good returns in the future. The commercial office and retail segment continues to show improvement given the GDP growth. The demand for this segment of the product is encouraging given the growing levels of income of both the corporate and individuals, said the satement.
The company is, however, concerned with the recent sharp increases in the commodity prices which could have an adverse impact on the construction costs. Whilst in the near term, the company expects the current pricing trends to help sustain the margins, but it is keeping a watchful eye on the future trends and its impact.