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Realty firm DLF on Wednesday reported a consolidated net loss of ₹70.65 crore for the first quarter ended June 30, 2020 as construction and sales activities were badly hit due to coronavirus pandemic.
It had posted a net profit of ₹ 414.73 crore in the year-ago period.
The company’s total income fell to ₹ 646.98 crore in the first quarter this fiscal, from ₹ 1,540.95 crore in the corresponding period a year ago, DLF said in a regulatory filing.
“As per the accounting standards and our revenue recognition policy, revenue is recognised at the time of handing over possession to the custome₹ .
“Issuance of the possession lette₹ got adversely affected during the lockdown. Consequently, the financial results were impacted during the quarter Q1FY21,” DLF said in a statement.
Due to the lockdown, residential segment was muted and witnessed new sales booking of only ₹ 165 crore during the quarter.
The performance in the rental business was impacted, as retail malls remained shut during the lockdown and consequent rental waive₹ .
On the outlook, DLF said: “As the world slowly finds its feet during the uncertain times of COVID-19, the company remains optimistic about the business and its growth returning to levels of normalcy“.
DLF said that the company has attempted to leverage this crisis into an opportunity to transform itself into an agile, leaner and far more efficient organisation.
“We have made significant progress in cost optimisation, which has consequently resulted in significant reduction of overheads, enabling improvement of margins in times ahead,” the company said.
Tight cash management led to a reduction in net debt by ₹42 crore, it added.
DLF said it ensured business continuity for its office tenants, and the office business continues to hold on with robust collections of more than 95 per cent for the quarter. “We continue to be optimistic about our office business.”
However, retail business was impacted owing to retail malls remaining shut during the lockdown period, it said.
“The retail malls have begun opening up, but with restrictions for multiplexes, limited operational timings and social distancing measures. We are witnessing continued, but gradual recovery in the retail business,” DLF said.
Post unlocking, the company said, it is witnessing a pickup in enquiries in residential segment and some early green shoots of demand.
“We expect the demand to improve gradually and believe that its strong brand image, healthy balance sheet and commitment to quality will act as a catalyst for future growth,” the realty major said.
The company would continue to develop new products and projects with an increased focus on dive₹ ifying its product mix to include significant future volumes of mid-income housing, it said in the statement.
New products under planning/execution currently stand at around 21 million sq ft.
The construction activities have recommenced at all sites, and the company is operating at around 65 per cent of pre-COVID levels presently, the statement said.
The execution of new products across both development and rental business remains on track
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