Real estate major DLF Ltd on October 21 reported a net profit of Rs 487 crore, reflecting a 28 percent year-on-year (YoY) increase, the company said.
"Housing demand continued to remain buoyant during the period. The luxury segment continues to witness sustained demand with a clear shift towards larger homes. We continue to experience further consolidation across the industry in the backdrop of changing consumer preference towards quality offerings from large and credible players," the company said in a statement.
The company clocked new residential sales bookings of Rs 2,052 crore, reflecting a YoY growth of 36 percent. Cumulative new sales for H1FY23 stand at Rs 4,092 crore, in line with our guidance, the company said.
The company said that its strategy of bringing low-rise developments across multiple geographies augurs well in the current market. It launched three new products across multiple price segments and geographies that include The Grove in DLF5, Gurugram, The Valley Gardens in Panchkula and Garden City Enclave-Independent floors in Sector 93, Gurugram.
All these new launches witnessed encouraging responses from the markets delivering cumulative sales of Rs 1,315 crore during the quarter. The Camellias- the super luxury offering, has proven to be the preferred choice. Sustained momentum of demand across this product led to incremental sales booking of Rs 473 crore during the quarter, it said.
Surplus cash generation during the quarter stood at Rs 409 crore, before a net outflow of Rs 292 crore on account of increased dividend payout. Deleveraging remains a focus area and consequently, our Net Debt stood at Rs 2,142 crore at the end of the quarter, the company said.
The company's office portfolio exhibited steady recovery with improvement in occupancies. The buoyancy in the retail business continues, the company said.
Rental income grew 20 percent YoY driven by strong growth in retail revenues. Consolidated revenue stood at Rs 1,369 crore as compared to Rs 1,123 crore last year, reflecting a 22 percent YoY growth. EBITDA stood at Rs 1,046 crore, with YoY growth of 21 percent and net profit was at Rs 355 crore, reflecting a YoY growth of 54 percent, the company said.
“We continue to witness a steady uptick in occupiers’ attendance across the portfolio along with gradual recovery in our leasing momentum. The ‘First Phase (1.7 msf)’ of our next-generation workplace – DLF Downtown, Gurugram has commenced operations and has now started contributing to the rental portfolio. The office area for this asset was completely pre-leased even before the commencement of operations,” it said in its regulatory filing.
“We continue to have a positive outlook towards the office business and hence continue to judiciously put more capital to fuel growth in this business. We have initiated the development of an additional office block in DLF Downtown, Gurugram. The development of DLF Downtown, Chennai remains on track,” the company said.
The retail business continues to exhibit healthy growth. Footfalls and consumption trends exhibited strong momentum. Sales growth has been better compared to pre-COVID levels and we expect similar trends in the near future given the sustained demand and the upcoming festive season.
DLF has developed more than 153 real estate projects and developed an area in excess of 330 million square feet. DLF Group has 215 msf (approx.) of development potential across the residential and commercial segments. The group has an annuity portfolio of over 40 msf (approx). DLF is primarily engaged in the business of the development and sale of residential properties and the development and leasing of commercial and retail properties.