DLF Ltd, India's biggest developer, a record 93% decline in fourth-quarter profit as demands for home, offices, shops fell following an economic slowdown. The company said in a release that net income fell to 1.59 billion rupees in the quarter ended on Mar 31, 2009 from 21.80 billion rupees a year ago.
Falling demand in homes, offices, shops are curtailing DLF's ability to start new projects. DLF was the worst performer on BSE Sensex.
The company has lowered home prices for projects in Chennai and Gurgaon to boost flagging demand. DLF gained 38 percent in April as it cut home prices and investors grew optimistic that lower borrowing costs may spur new purchases.
The company plans to exit some businesses, including wind power, to reduce debt and has withdrawn from township projects in Bidadi and Dankuni.
Full-year profit fell 41 percent to 46.3 billion rupees and sales fell 28 percent to 105.4 billion rupees, the company said. The figures include 1.63 billion rupees of losses from non-real estate businesses such as DLF Pramerica Life Insurance Co., hotels and power, DLF said.
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