Mercator Ltd today posted a net loss of Rs 28.70 crore for the quarter ended June 30, 2017 on the back of lower income. DLF's net profit stood at Rs 261.85 crore in the year-ago period, the company said in its BSE filing.
In February a year ago, the company had signed a definitive share purchase agreement with Reliance Infrastructure for acquisition of its entire cement business for an enterprise value of Rs 4,800 crore.
DLF's net debt rose by around Rs802 crore to Rs25,898 crore in the first quarter compared to the preceding quarter.
"The transaction for sale of CCPS (Cumulative Compulsorily Convertible Preference Shares) in DCCDL (DLF Cyber City Developers Limited) is in advanced stages of discussion", it said. "Despite growth in the economy, the demand for residential real estate continues to be soft", the company said.
"Almost zero incremental sales coupled with outflow for construction activities to accelerate project completions continued to burn cash during the quarter".
In October 2015, DLF had announced that its promoters would sell their entire 40 per cent stake in DCCDL, which holds the bulk of the commercial assets of the group.
Sources had earlier said the deal is likely to be valued at around Rs 12,000-13,000 crore. Back-end integration challenges continued as it was dependent upon the timing of the GST registrations of the vendors also, it said.
"Though the results are below expectations due to unforeseen disruption in some key markets where the company operates, it was a quarter of major consolidation and capacity building across functions, which makes the Group well positioned for the economic upturn expected in the coming months and the next fiscal year", said company Chairman Harsh V. Lodha.
With the reduction in the benchmark interest rate by the RBI this month and the markets guiding towards further softness in the interest rate, the sector should witness a recovery soon. The company said that it shall have a healthy pipeline of finished inventory for sale in the foreseeable future when the demand returns.