DLF on Monday reported more than two-fold jump in consolidated net profit to Rs 261.42 crore for the quarter ended June 30, helped by sale of its cinema business to PVR. Its net profit had stood at Rs 125.87 crore in the April- June quarter of last financial year. Income from operations fell by 22 per cent to Rs 1,867.46 crore during the first quarter of the current fiscal, from Rs 2,388.72 crore in the year-ago period.
DLF’s total income declined however to Rs 2,025.58 crore for the quarter ended June, 2016-17, from Rs 2,520.02 crore in the year-ago period. The company’s finance cost increased to Rs 747.84 crore from Rs 621.82 crore during the period under review. DLF has booked a profit before tax of Rs 372 crore under exceptional item from the sale of its cinema business. In May, it had entered into an amended agreement to sell its 32 screens of DT cinemas to multiplex operator PVR at a revised consideration of Rs 433 crore.
The company has a land bank of 281 million sq ft, of which 37 million sq ft is under construction. DLF promoters are likely to sell 40 per cent stake in a rental arm DLF Cyber City Developers Ltd (DCCDL) by September, a deal estimated to fetch around Rs 12,000 crore. It would continue to own 60 per cent stake in the DCCDL. The promoters - billionaire K P Singh and family - would reinvest a significant part of the amount realised from this sale into DLF Ltd, helping the realty giant to reduce its debt substantially. Three global institutional investors -- Blackstone, GIC and Abu Dhabi Investment Authority -- have been shortlisted as potential buyers. Due diligence process is on and agreement is likely to be signed by September. DCCDL has about 25-26 million sq ft of leased commercial space with an annual rental income of about Rs 2,250 crore.
DHFL’s NCD subscribed over 6 times; issue to close today
Mortgage lender Dewan Housing Finance Corporation’s issue of non-convertible debentures (NCDs) was subscribed by over 6 times on the first day on Monday. Further, the company has decided to close the issue today, nearly two weeks ahead of earlier scheduled closure - September 12. The company’s NCDs issue comprises base issue Rs 2,000 crore, with an option to retain over-subscription up to Rs 8,000 crore aggregating up to shelf limit of up to Rs 10,000 crore.
“We are overwhelmed with the response shown by the investors on our second consecutive NCD public issue, which is oversubscribed by 6.32 times has attracted a subscription of around Rs 12,645 crore from investors on first of the NCD issue as per the initial data available on the stock exchanges,” DHFL CMD Kapil Wadhawan said in a statement.
The Finance Committee of the board has decided to close the NCD issue on August 30, it said. The issue was scheduled to close on September 12. The retail individual investor category has been oversubscribed by more than 3.12 times, he said, adding, the success of both our NCDs has set a benchmark in the capital markets and will further deepen the debt markets with wider public participation.