India's largest real estate company DLF Group has reported a consolidated net loss of Rs 72 crore in the April to June quarter as against a net profit of Rs 414 crore in the same period a year ago.
The company's consolidated revenue from operations declined to Rs 549 crore as against Rs 1,331 crore in Q1 FY20 due to crashing sales amid the COVID-19 countrywide lockdown since March-end.
"As per the accounting standards and our revenue recognition policy, revenue is recognised at the time of handing over possession to the customers," DLF said in a statement.
"Issuance of the possession letters got adversely affected during the lockdown. Consequently, the financial results were impacted during the quarter Q1 FY21."
Due to lockdown, the residential segment was muted and accordingly and witnessed new sales booking of only Rs 165 crore during the quarter. Post unlocking, the company is witnessing a pick-up in enquiries and some early green shoots of demand.
"We expect the demand to improve gradually and believe that its strong brand image, healthy balance sheet and commitment to quality will act as a catalyst for future growth," said DLF.
The company has attempted to leverage this crisis into an opportunity to transform itself into an agile, leaner and far more efficient orgsation, it said.
The office business continues to hold on with collections of more than 95 per cent for the quarter but retail business was impacted owing to retail malls remaining shut, said DLF.
New products under planning and execution currently stand at around 21 million square feet, while construction has recommenced at all its sites with operations at 65 per cent of pre-COVID levels.
( With inputs from ANI )