The current economic slump has hit DLF Ltd, India's largest listed real estate firm very baldy. It reported a 93% slump in quarterly profit. The property prices tumbled and it sold fewer homes and office buildings space in an economic downturn. DLF said that its consolidated net profit fell to INR 159 crore in its fourth quarter ended March from INR 2,177 crore a year ago. This is surely going to have huge impacts on the Indian economy which has shown little effect of the global meltdown.
In a quarter that saw demand evaporate in all segments, residential and commercial, sale and leasing. Revenue fell by 69% to INR 1,350 crore from INR 4,370 crore.
While residential demand is expected to improve, the outlook for the commercial business continues to remain weak. This has forced DLF to launch more mid-income housing projects in Kochi, Bangalore and Hyderabad, among other cities, and divest stakes in some hotel projects to generate liquidity in the current fiscal.
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