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.