KP Singh, non-executive director and chairman at DLF Ltd, resigned from his position on Thursday as part of succession planning, the company said in a statement.
The DLF board has appointed KP Singh’s son Rajiv Singh as the new chairman of the company. Currently, Rajiv is the vice chairman and whole-time director at DLF. However, KP Singh will continue in a non-executive role as chairman-emeritus at the firm.
KP Singh is credited for bringing a shift in the real estate industry by redefining shopping, recreation and leisure experiences. He was recognised for his contribution with the Padma Bhushan award in 2010.
DLF is the largest publicly listed developer and the second-largest behind privately held Macrotech Developers (formerly Lodha Developers) in the country.
Meanwhile, the company reported net sales of Rs 1,694 crore in Q4 2019-20, down by a third over the same period the previous year. It clocked a loss of Rs 1,857 last quarter as compared to a profit of Rs 437 crore in the year-ago period.
The loss in the latest quarter was on account of a one-time exceptional tax provision of Rs 272 crore and a deferred tax asset (DTA) reversal of Rs 1,916 crore on the adoption of the lower tax rate.
In the financial year ended March, the company clocked sales of Rs 6,083 crore, down from Rs 8,366 crore in the previous financial year. Tax expene singed its bottomline with the firm moving from Rs 1,319 crore net profit to a loss of Rs 583 crore during 2019-20.
The company said that the COVID-19 pandemic has led to an industry-wide short-term recalibration of demand. While the long-term impact and full extent of this crisis remain to be seen. However, the company retains a positive outlook for the long term on account of its healthy balance sheet, strong brand image and unwavering commitment to quality.
The firm has not availed any moratoriums or deferments on its debt obligations.
“The company has sufficient liquidity to sail through these uncertain times. This crisis has presented an opportunity for DLF to undertake exercises in being leaner and far more efficient in terms of its cost structure,” the statement added.
The company said that it has observed sustained success in office rental collections. It has provided comprehensive business continuity support to all stakeholders and continues to receive positive feedback from its tenants.
The statement said that owing to the extended lockdown, malls across the country have not been operational and this has led to some short-term pain for the tenants.
To find out more about the prospects for the realty sector in India, join the second edition of VCCircle’s Real Estate Investment Summit, a digital event, on June 12.