DLF slips into net loss in Q4; aims to cut debt by 50 per cent in 3 years

NEW DELHI: Realty major DLF Ltd today said it has posted a consolidated net loss of Rs 4.19 crore in the Q4 of FY13 due to poor sales and losses of subsidiaries, and was targeting to reduce debt by 50 per cent in three years.


It had clocked a net profit of Rs 211.70 crore in the January-March quarter of 2011-12 fiscal, the company said.

"With the successful completion of Institutional Placement Programme (IPP) and anticipated closure of the residual divestment of non-core assets, the company expects its net debt to come down in the current fiscal", the DLF Group Chief Financial Officer Ashok Tyagi said in a statement.

"The company expects to double its EBITDA and reduce its debt by 50 per cent over the next three years. The Company expects to become free cash positive by FY15," he added.

DLF's debt stood at Rs 21,350 crore as on December 31, 2012.

During the fourth quarter of 2012-13 fiscal, the company's total income from operations declined by 15 per cent to Rs 2,225.55 crore from Rs 2,616.78 crore in the same period of previous year.

The company's peformance during the fourth quarter as well as in the entire 2012-13 fiscal took a beating due to decline in total sales. Besides, the company registered a loss of Rs 326.24 crore from its hotel business and its subsidiary firm DLF Pramerica Life Insurance Company.

For the full 2012-13 fiscal, DLF Ltd said its net profit declined by 41 per cent to Rs 711.92 crore as against Rs 1200.82 crore in the earlier fiscal.

Net income also declined to Rs 7,772.84 crore from Rs 9629.38 crore in the review period.

"The revision in the accounting guidance note on Real Estate issued by ICAI adversely impacted the recognition of revenues on the new projects launched during FY 13 and as a result reduced profits," the company statement said.

The adoption of new guidance note envisages that the revenue can be recognised after reaching certain milestones, particularly incurring 25 per cent of budgeted project cost (excluding cost of land).

"Had the new accounting norms not been adopted, the Company's revenues would have been higher by Rs 750 crore approximately while EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) would have been higher by Rs 400 crore approximately," it added.

The company said during the 2012-13 fiscal it realised about Rs 3,160 crore through divestments of non-core assets with its overall annuity income growing to Rs 1,850 crore.

It achieved gross sales of 7.23 million sq ft (msf) during the year from new launches and existing projects while completed projects of 12.4 msf of residential and commercial office space and the delivery was underway, the company said.