Real estate developer DLF on Wednesday reported a consolidated net loss of Rs 72 crore for the June quarter of fiscal year 21, as the national blockade due to Covid-19 interrupted the structure’s schedules and had a negative effect on the operations of the mall.
The developer had reported a loss of Rs 1,867 crore versus the T4FY20 due to a single and unique provision and a unique reversal of the DTA by adopting a reduced tax rate.
DLF stated that Covid-19 had an effect on operations during the June quarter high and was not comparable to previous quarters.
The company’s overall revenue source fell 65% sequentially to Rs 646 crore in April-June. On an annual basis, it decreased by 58% compared to Rs 1,541 crore in the first quarter of fiscal 2020. It reported Ebitda of 99 million rupees in the first quarter of fiscal year 21.
Regarding the effect on earnings, DLF stated: “According to accounting criteria and our earnings accounting policy, profits are identified at the time of delivery to customers. The issuance of property letters was affected during the closure. As a result, the monetary effects had an effect in the first quarter of fiscal year 21.”
Its leasing business, DLF Cyber City Developers (DCCDL) reported a consolidated profit of Rs 929 crore and a net source of profit of Rs 160 crore the quarter from April to June.
“The functionality of the rental business has been affected by the closure of grocery shopping centers during the era of the blockade and the consequent rental exemptions,” DLF said.
In the future, the company said: “We have made significant progress in cost optimization, resulting in significant relief in overall costs, allowing for increased margins in the coming times. Strict money control has led to a relief in Rs 42 of crore’s net debt, despite those difficult times.”
Regarding the workplace rental business, DLF stated that it provided continuity to workplace tenants and that the corporate continued to cling with physically powerful charges of more than 95% for the quarter. “We remain positive about our workplace activities. However, the retail industry was affected by the closure of shopping malls during the employer closure period. Shopping malls have yet to open with multi-cinema restrictions, limited hours of operation and social distance measurements. continuous but slow recovery in the retail industry,” he said.
Due to the closure, the residential segment was mute and, as a result, witnessed new sales reservations of only 165 million rupees. After unlocking, the company sees a resumption of queries and some initial green increases on the call. “We hope that the call will be gradually improved and that its strong logo image, strong balance and commitment to quality will serve as a catalyst for long-term growth,” he said.
New products that are currently being planned and executed amount to approximately 21 million square feet (m2). “Construction has resumed at all of our sites and lately we are operating at approximately 65% of the pre-Covid levels. The execution of new products in progress and leasing activities are still ongoing. The project progression in the DCCDL portfolio quantity to four msf,” he added.
DLF did not invoke any moratorium on its lines of credit. It hopes that as REITs increase in number and size, leasing activities will have greater liquidity and more transparent benchmarks.
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