Mumbai: DLF Ltd and Oberoi Realty Ltd, two of countries top real estate firms reported a decline in net profit in the second quarter. The results showed a warm property market, the result of slow down and decline in home buyers and corporate interest.
The countries larges real estate major DLF reported a 27.8 pc surge in net to Rs 100 crore, while the net sale lowered 4.1 pc compared to the previous year of Rs 2,039.54 crore. Profits of DLF got jolt due to high interest rates and low home sales.
DLF burdened by Rs 20,369 cr of debt has been exiting the business and never consider the real estate arm to cut the debt. The firm had sold two non-core assets worth Rs 147 cr to cut down the debt. It also divested a huge stake in a subsidiary and sale off its wind turbines in Rajasthan for Rs 67.44 cr.
It had also agreed to sell off its 75 pc stake in DLF life insurance to Dewan Housing Ltd to pay off its debts.
On the other hand Oberoi Realty, posted 48 pc drop in its net for the second quarter due to weak sales. The profit of the Mumbai-based realty firm declined to Rs 64 cr from Rs 124.4 cr compared to last year. The firm deals with residential, commercial and hospitality segments. The stand-alone profit rose to 95 pc to reach Rs 114 crore. The Mumbai market is experiencing some slowness in the under construction projects there is a low demand for the ready made projects.
Bangalore-based Puravankara Projects Ltd also reported an 8 pc drop in net profit for the second quarter. While profit fell to Rs.46 crore from Rs.50 crore a year earlier, income from operations increased 9 pc to Rs.298 crore.