MUMBAI: Net exceptional gain on account of valuation of its balance stake in rental arm has pushed realty developer DLF’s consolidated net profit to Rs 4,111.95 crore for the quarter ended December as against Rs 98.88 crore a year ago.
Total income for the period, however, declined nearly 15% from a year ago to Rs 1,855.21 crore, the company said in a regulatory filing.
Promoters of DLF have sold their 33.34% stake in its rental arm DLF Cyber City Developers Ltd (DCCDL) to Singapore sovereign wealth fund GIC for Rs 8,956 crore. The transaction was concluded on December 26, and the company now holds balance 66.66% stake in DCCDL.
“In accordance with Ind-AS 110 'Consolidated Financial Statements', the Group has fair valued its remaining equity stake (66.66%) in DCCDL Group and recorded a gain of around Rs 9,927.3 crores arising due to deemed disposal on account of loss of control of DCCDL Group… The aforementioned gain has arisen due to compliance with applicable Indian Accounting Standards pursuant to loss of control. This is not an operating income and is non-recurring in nature,” DLF said.
This has been included as an 'exceptional item' in the consolidated financial results of the company for the period ended December 31, 2017. Consequently, the company has also recorded deferred tax liability of Rs 4,060 crores at the consolidated level in respect of investment in DCCDL as a joint venture.
The company has appointed Vivek Mehra as an Additional Director in the capacity of Independent Director on its board. He is Chartered Accountant with total 35 years of experience in tax, regulatory, mergers & acquisitions.
In December, the developer had inducted its then Group Chief Financial Officer Ashok Tyagi into its board of directors as whole-time director along with Devinder Singh, managing director of subsidiary DLF Home Developers.