Bengaluru: DLF Ltd, India’s largest real estate firm, posted a 94% drop in net profit to Rs12.57 crore in the September quarter from a year earlier.
The profit came on a 21.3% decline in revenue to Rs1,751.34 crore during the period.
During the quarter, DLF announced what was billed as a potentially game-changing transaction in which an affiliate of Singapore’s sovereign wealth fund GIC Pte. Ltd agreed to acquire a 33.34% stake from the promoters in the developer’s rental arm DLF Cyber City Developers Ltd (DCCDL) for around Rs8,900 crore.
DCCDL will also buy back Rs3,000 crore of preference shares held by promoters in two instalments, according to the announcement.
Along with some additional fund-raising, the stake sale will see capital infusion of nearly Rs13,000 crore in DLF, the firm said. The money will primarily be used for debt reduction.
In November, the Competition Commission of India (CCI) approved GIC’s proposal to acquire the stake in DLF’s arm for $1.39 billion, or Rs 8,900 crore.
Sequentially, DLF’s net profit and total income fell 88.46% and 20.79% respectively.
DLF Ltd shares lost 1.86% to close at Rs 207.90 on Friday on the BSE, while the benchmark Sensex gained 0.19% to close at 33,314.56 points.