India’s largest real estate company, DLF, reported a consolidated loss of 70.65 rupees for the first quarter ending June 30, as the structure and sales activities were greatly affected by the coronavirus pandemic.
It had posted a net profit of 414.73 million rupees last year.
The company’s total profit fell to Rs 646.98 in the first quarter of this fiscal year, to Rs 1,540.95 in the corresponding era a year ago, DLF said in a regulatory file.
“According to accounting criteria and our earnings accounting policy, profits are at the time of delivery to customers.
“The issuance of the property letters was affected by the blockade. As a result, the monetary effects were affected in Q1FY21,” DLF said in a statement.
Due to the closure, the residential segment remained silent and recorded new sales reserves of only 165 million rupees in the quarter.
The functionality of the rental activity was affected, as grocery shopping centres remained closed the closure and consequent lease exemptions remained closed.
Regarding the outlook, DLF said, “While the global is slowly placing its mark on the dubious coVID-19 era, the corporate remains positive about the activity and its expansion returning to general levels.”
DLF said the company had tried to take advantage of this crisis in an opportunity to become an agile, lighter and much more effective organization.
“We have made progress in cost optimization, which has resulted in overall cost relief, which has allowed margins to increase in the coming times,” the corporate said.
Strict money control has led to debt relief of 42 million rupees, he added.
DLF said it has ensured continuity of its tenants’ operations and activities continue to hang with physically powerful charges of more than 95% for the quarter. “We remain positive about our activities.”
However, retail activity was affected by the closure of grocery stores during the employer closure period, he said.
“Stores have begun to open, but with multiplex restrictions, limited hours of operation and social distance measurements. We are seeing a continuous but slow recovery in retail,” DLF said.
Following the release, the corporation said it is witnessing a resumption of consultations in the residential segment and some initial green increases in demand.
“We hope the call will gradually improve and we believe that its strong logo image, strong balance and commitment to quality will serve as a catalyst for long-term growth,” said the main asset.
The company will continue to expand new products and projects with greater diversification of its product line to reach large volumes of housing for medium-income people in the long term, he said in the statement.
New products that are being planned/executed lately represent approximately 21 million feet.
Construction activities resumed at all sites and lately the company operates at about 65% of the pre-COVID levels, according to the statement.
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