DLF

The poor Q2FY13 numbers of DLF did not come as a surprise but the percentage fall did cause some flutter. The company posted consolidated net revenue at Rs.2039 crore, down 7% QoQ and down 19% on a YoY. With topline sliding, it’s net profit at Rs.138 crore was sequentially down 58% and 63% on a YoY.  Its interest outgo for the quarter was at Rs.522 crore, which eats away over 25% of the revenue and is almost four times the net profit.

Apart from lower sales offtake, one can also blame it on the perennially high debt. As at 30th June 2012, the company had a debt of Rs.23,200 crore and in Q2, after sale of its prime land in Mumbai to Lodha Developers, net dent stands at Rs.21,220 crore, down Rs.2000 crore.  By the end of the current fiscal, it hopes to bring it down, through its ongoing divestment process to Rs.18,500 crore.  In the coming months, thus the triggers could be sale of Aman Resorts and that of wind energy business. The company has stated that it has ‘other miscellaneous transactions’ worth Rs.500 crore which could also be closed before end of FY13. Though the company says that the worst is behind it, the high debt and the cloud of corporate governance on account of Vadra will continue to remain an overhang.