Shares of DLF Ltd., India’s largest property developer, fell to the lowest in more than eight months after reporting its first quarterly loss since at least 2007.
DLF’s shares fell as much as 6 percent to 193.50 rupees in Mumbai, the lowest since Sept. 6. They have slumped 16 percent this year, compared with a 2.2 percent rise in the S&P BSE Sensex index. A change in the way the company recognizes revenue resulted in the loss, DLF said in an exchange filing.
Sales at the company, controlled by billionaire Kushal Pal Singh, fell for a sixth straight quarter as Asia’s third-largest economy expanded less than 5 percent in the three months ended March 31. The Gurgaon, India-based DLF reported a loss of 41 million rupees ($724,000) in the period compared with 2.1 billion rupee profit a year earlier.
“Till the economy gets back on a growth path, a substantial turn around will be difficult for DLF,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd., said by phone today. “High interest costs, debt and slow demand will be a drag on the earnings at least for another quarter.”
The company has debt of more than 217 billion rupees as of March 31, filings to exchanges shows. DLF plans to bring down the debt to 171 billion rupees in the year ending March 2014, DLF said in a statement.
The shares changed hands at 195.25 rupees as of 2:23 p.m. in Mumbai.