DLF Registers 28 Percent Decline in Q2 Net Profit

Real estate major DLF has registered 28 percent decline in net profit for second quarter. The biggest real estate company in India witnessed decline of 4 percent in income from operations, which stood at Rs 1956 crore compared to Rs 2039 crore during same period last year.

The consolidate net profit of DLF stood at Rs 100 crore compared to Rs 138 crore for the same period last year. The company incurred expenses of Rs 1527 crore compared to Rs 1476 crore during the quarter under review.

Real estate companies in India have seen lower margins and less number of sales due to slowdown in realty market in India. Many projects have been delayed by developers due to scarcity of funds and higher rates in Indian market. Buyers have also declined over the past few years due to higher interest rates. Also, many buyers are expecting real estate developers to reduce the prices and they are still waiting for better deals. In major cities, the slowdown in real estate has resulted in higher inventory levels for developers.

DLF currently has 52 million square feet area under construction for various projects. The company stock was trading marginally down in today’s trade. The stock has touched 52-week high of Rs 289 and low of Rs 120 on NSE.

Ranbaxy Reports Loss of Rs 454 Crore for Quarter Ending September

Ranbaxy Laboratories has reported Rs 454 crore loss for quarter ending September 2013 on 3.4% rise in revenues. The biggest pharmaceutical company in India has been suffering for past few years due to regulatory troubles with US FDA.

Ranbaxy Labs reported profit of Rs 754 during the same quarter last year. The company also suffered on account of stock write-off worth Rs 70 crore at Mohali plant. The company registered forex loss of Rs 360 crore during the quarter.

The revenue was up by 3.4% at Rs 2802 crore. The company registered Rs 480 crore sales in East Europe. The sales in West Europe were down by 31 percent. The company managed to grow marginally in Africa and Middle East.

The company has disappointed investors on many occasions in the past couple of years. Even after the Japanese pharmaceutical company took over the control of Ranbaxy, things haven’t improved much. The stock seems over-valued at current levels, considering the issues like FDA alerts on all its plants in India.