Realty major DLF on Friday reported a 48 per cent decline in its consolidated net profit at Rs 232.14 crore for the quarter ended September.
Its net profit stood at Rs 445.83 crore in the year-ago period.
Total income fell to Rs 1,723.09 crore in the second quarter of this fiscal from Rs 1,940.05 crore in the corresponding period of the previous year, according to a regulatory filing.
The company is taking steps to start the process of getting the rental business Real Estate Investment Trust ready, DLF said in a statement.
"COVID-19 has impacted the economy and the market sentiment in the short term. We remain optimistic about our business and its growth returning to normalcy," DLF said in the statement.
The residential business is seeing green shoots of demand with consumer interest witnessing rising trends, it said.
"We believe that consistent quality supply in conjunction with affordability will lead to the overall recovery in demand," DLF said.
The development business demonstrated strong operations during the September quarter and new sales bookings for the quarter rose to Rs 853 crore as compared to Rs 152 crore in the previous quarter.
"We are getting ready for a new build-out cycle and have identified a strong pipeline to be launched across various segments and geographies over the next few years," DLF said.
DLF said that its long-term outlook towards the rental business remains positive.
The office business remains stable and continues to exhibit strong collections of 98 per cent + levels.
Cyber Park, a 2.5 million sq ft commercial development in Gurugram, commenced operations from August. This addition of asset to the rental portfolio will lead to incremental revenue of Rs 375-Rs 400 crore.
"The retail segment is witnessing gradual recovery with the luxury segment exhibiting better trends. With all our retail properties now open and restrictions lifted for multiplexes and entertainment zones, we expect an increase in footfalls leading to recovery. We expect that the festive season might provide the required fillip for this segment," DLF said.