NEW DELHI Aug 1 DLF Ltd, India's top
real estate developer, reported a 29 percent fall in quarterly
net profit, hit by slowing home sales in Asia's third-largest
economy as high inflation and interest rates continued to deter
DLF, which builds homes, offices and shopping malls, said
late on Thursday that net profit for the June quarter was 1.28
billion rupees ($21.1 million), compared with 1.81 billion
rupees a year earlier.
Income from operations fell 25 percent to 17.25 billion
rupees, the company said.
While Prime Minister Narendra Modi's election triumph two
months ago and his promises of economic revival buoyed business
confidence and India's financial markets, home buying has been
slow as consumers remain anxious about the future.
Sales in DLF's home market in northern India fell 22 percent
in the April-June quarter while countrywide sales rose 5 percent
over the same period from a year ago, according to Mumbai-based
real estate data analysis firm Liases Foras.
Founded by billionaire K.P. Singh, DLF, which is valued by
the market at $5.9 billion, has been selling non-core assets to
reduce its net debt, which was $3.15 billion as of end-June.
Shares in the New Delhi-based company have risen about 19
percent since the beginning of the year, but underperformed the
wider real estate index that has surged 31.1 percent
during the same period.
($1 = 60.5500 Indian Rupees)
(Reporting by Aditi Shah; Editing by Gopakumar Warrier)