DLF reports first ever quarterly loss of Rs 4 cr on slow home sales

DLF, India’s largest real estate developer, posted its first ever quarterly net loss of Rs 4.19  crore for the January-March quarter, weighed down by slowing home sales in a sluggish economy.

Losses of Rs 77 crore in its insurance and hotel subsidiaries contributed to the overall quarterly loss, the company said in a statement late on Thursday.

DLF, which builds homes, offices and shopping malls, has lost about 61 percent of its value since listing on the stock exchange in 2007, underperforming the wider market

DLF was valued by the market at $6.5 billion as of Thursday’s close.

The sale of homes in the area around capital city New Delhi, DLF’s main market, fell 18 percent in the quarter ended March, the steepest regional drop in the country, according to Mumbai-based property data analysis firm Liases Foras : property in gurgaon.

DLF had reported a net profit of  Rs 212  crore in the year ago quarter. Revenues for the fiscal fourth quarter were down 15 percent at Rs 2230 crore from a year earlier.

Analysts on average expected the company to post net profit of Rs 190 crore on revenues of Rs 1980 crore.

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Meanwhile, the company said DLF Global Hospitality Ltd (DGHL) deal with Silverlink could not be closed as per earlier timelines and has been now extended to June 2013.

“Pursuant to the terms of the share purchase agreement, management foresees an estimated loss of Rs 65 crore which has been recorded as an impairment of goodwill create don Silverlink consolidation in the quarter ended December 31, 2012,” it said.

The shares of the company today declined by 2.16 percent to close at Rs 206 a piece on the BSE.