Real estate major DLF Ltd on January 24 reported an almost 27% increase in its consolidated net profit that stood at ₹655.71 crore in the December quarter on the back of sustained housing demand.
Its net profit stood at ₹517.94 crore in the year-ago period.
The company’s total consolidated income rose to ₹1,643.51 crore in the October-December quarter of the 2023-24 fiscal from ₹1,559.66 crore in the corresponding period of the previous year, according to a regulatory filing.
DLF’s total expenses declined to ₹1,131.97 crore in the third quarter of this fiscal from ₹1,151.62 crore in the year-ago period.
DLF had reported a consolidated net profit of ₹629 crore in the second quarter of this fiscal that was up by 29% YoY.
The DLF Board also approved the sale of DLF Centre to DLF Cyber City Developers for an aggregate consideration of ₹825 crore, the company said in a regulatory filing.
“In line with the company’s stated intent and strategy to consolidate the rental business, the board has approved the sale of one of the compony’s assets namely ‘DLF Centre’, a commercial building in Central Business District of New Delhi to DLF Cyber City Developers Ltd, a material subsidiary of the compony of on aggregate consideration of ₹825 crores,” the company said.
The company recorded the highest quarterly sales booking of ₹9,047 crore backed by multiple launches during the quarter. It launched three new products totalling over 5 msf during the quarter across multiple segments, the company said.
The launches during the quarter were DLF Privana South, Gurugram- a luxury high rise development, Central 67, Gurugram – a shop-cum-offices plotted development and The Valley Orchard, Panchkula-low-rise independent floors.
“We witnessed healthy demand momentum across all these products and both projects in Gurugram were completely sold out within a record time. With this strong performance, the new sales bookings for the nine-month period stood at ₹13,316 crore and hence will be comfortably exceeding our full year guidance,” the company said in a statement.
“The sustained demand momentum across all segments continues to be encouraging and we continue to focus on strengthening our new product pipeline which we plan to launch in a calibrated manner across our key markets,” it said.
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The company improved its net cash position to ₹1,246 crore at the end of the quarter.
The office portfolio exhibited a sustained performance while retail segment continues to deliver healthy growth. Q3FY24 consolidated revenue of DLF Cyber City Developers Limited (DCCDL) stood at ₹1,476 crore, reflecting y-o-y growth of 8%; consolidated profit for the quarter stood at ₹434 crore, a y-o-y growth of 21%. The credit rating for DCCDL was upgraded to ICRA AA+/Stable during the quarter, vindicating the inherent strength and quality of our rental portfolio.
The company’s non-SEZ segment continues to operate at healthy occupancy levels of 97%. Its new office developments across Gurugram and Chennai continue to garner strong interest from large occupiers and consequently have achieved a pre-leasing of approximately 91%, the company said.
“The government’s decision for the amendment in the SEZ regulations allowing floor-wise denotification should lead recovery in the SEZ segment too. We expect normalcy to return in occupancy levels in this segment over the next few quarters,” the company said.
The company said that its retail business continues to deliver strong growth and it continues to remain focused on increasing our retail portfolio across multiple geographies.
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“We remain committed to our goals of delivering consistent and profitable growth which is well supported by the strong performance in our residential business, healthy pipeline of new products, quality assets in the growing rental portfolio backed by a healthy balance sheet and supportive market dynamics,” it said.
DLF has developed more than 158 real estate projects and developed an area in excess of 340 million square feet. DLF Group has 215 msf (approx.) of development potential across residential and commercial segment. The group has an annuity portfolio of over 42 msf (approx).