DLF
Mumbai: Two of India’s top real estate firms, DLF Ltd and Oberoi Realty Ltd, reported a decline in net profit in the second quarter. This trend reflects a cooling property market, marked by a slowdown and decreased interest from both home buyers and corporate entities.
DLF Ltd
DLF, the country's largest real estate major, recorded a 27.8% increase in net profit to Rs 100 crore. However, net sales dropped by 4.1% compared to the previous year, totaling Rs 2,039.54 crore. The company's profits were adversely affected by high interest rates and low home sales.
Weighed down by Rs 20,369 crore of debt, DLF has been divesting assets to reduce its financial burden. The firm sold two non-core assets worth Rs 147 crore and divested a significant stake in a subsidiary, in addition to selling its wind turbines in Rajasthan for Rs 67.44 crore. Moreover, DLF agreed to sell a 75% stake in DLF Life Insurance to Dewan Housing Ltd as part of its debt reduction strategy.
Oberoi Realty Ltd
Conversely, Oberoi Realty experienced a 48% drop in net profit for the second quarter, attributed to weak sales. The Mumbai-based realty firm's profit declined to Rs 64 crore from Rs 124.4 crore compared to the previous year. The firm operates in residential, commercial, and hospitality segments. Its stand-alone profit rose by 95% to reach Rs 114 crore. The Mumbai market is currently experiencing a slowdown in under-construction projects, coupled with low demand for completed projects.
Puravankara Projects Ltd
Bangalore-based Puravankara Projects Ltd also reported an 8% drop in net profit for the second quarter. While profits fell to Rs 46 crore from Rs 50 crore a year earlier, income from operations increased by 9% to Rs 298 crore.