New Delhi, May 1 (Inditop) Hit by severe cash crunch, realty major DLF Ltd has decided to sell its wind power business to raise funds even as the company’s net profit in the January-March quarter crashed 93 percent.
DLF, based here, Friday said in a regulatory statement that its net profit dropped to Rs.159 crore ($31.8 million) in the last quarter from Rs.2,177 crore ($441 million) in the like period last year.
The company also said it was looking for a buyer for its wind power business, a move that would allow the firm to cut its debts.
Company sources said DLF could raise around Rs.1,100 crore by selling the wind power unit.
They added that companies like Adani Group, Essar Power Ltd, Infrastructure Leasing and Financial Services Ltd, Hong Kong-based CLP Group and Britain’s BG Group Plc have expressed interest in buying the wind power business.
DLF’s consolidated total income during the January-March quarter plummeted 69 percent to Rs.1,351 crore from Rs.4,372 crore in the corresponding period last year.
The company’s net profit for 2008-09 dipped over 41 percent to Rs.4,629 crore from Rs.7,821 crore earned the previous year.
The total consolidated income for last fiscal was Rs.10,541 crore – a decrease of a little over 28 percent from the previous fiscal’s Rs.14,684 crore.
“Real estate sector bore the brunt of instability and loss of confidence in the local economic environment for the past six months. This has, hopefully, stabilised and in line with our earlier projections, the sector should start witnessing recovery from third quarter,” Rajiv Singh, vice-chairman, DLF said in the statement.
The company also gave discounts to woo customers which hit the firm’s revenues by Rs.688 crore.
During the fiscal 2008-09, DLF acquired land parcels worth Rs.5,670 crore.
Moreover, the total area being developed by the company has fallen to 425 million square feet from 751 million square feet due to exit from Bidadi and Dankuni projects.
Earlier in the day, another real estate company – Puravankara Projects – also reported an 80 percent fall in its fourth quarter profit, underlining the real estate sector’s gloomy scenario.
