RIding High on Super Luxury Housing Push
Torbit Realty- August 04, 2024
Riding High on Super Luxury Housing Push
Making the most of its operating performance and expanding its launch pipeline with a global focus, realty major DLF is banking big on luxury and super luxury residences to achieve strong growth.
Considering the healthy performance by the company in the June quarter, its strategy is already paying dividend. DLF has posted a 23 per cent increase in its consolidated profit to Rs 645.61 crore and total income rose to Es 1729.82 crore. New sales bookings were recorded at Rs 6404 crore, registering a robust annual growth of 214 per cent. According to Motilal Oswal Financial Services Ltd , DLF reported a more than three-fold jump in pre-sales as it clocked bookings of INR 64 billion, largely driven by the successful launch of the second phase of Privana West, Gurgaon. The company continues to sustain momentum at its ultra-luxury project, ‘The Camellias’ in DLF 5 with bookings of? ?INR 2.5 billion.
With a balanced inventory of INR 30 billion, launches will thus be the key to driving its pre-sales growth. DLF Limited aims to launch INR 420 billion worth of projects across the core markets, which will lead to 22 per cent YoY pre-sales growth in FY’25. Beyond FY’25, the company has set a project pipeline worth? INR 625 billion to be launched over 2-3 years.
Collections also spiked in 1QFY25 and almost doubled YoY to INR 30 billion. As a result, OCF surged 130 per cent YoY to INR 18 billion, which led to a surplus of INR 13 billion, post INR 4 billion of land payment. The balance sheet further got strengthened as it ended with a net cash position of INR 29 billion. Revenue came a bit softly at INR 13.6 billion, down 4 per cent YoY. While gross margin remained steady YoY at 51 per cent, EBITDA margin contracted 19pp due to an 85 percent YoY jump in other expenses on account of the big launch. PAT, including INR 3 billion of @ income increased 23 percent to INR 6.4 billion.
Ramped up Rental Income?
DLF also gained from rental income. Rental income in DLF Cyber City Developers Ltd. commercial portfolio increased 10 percent YoY to INR 11.5 billion, led by the completion of 1.3msf Downtown Chennai asset and 40bp rise in occupancy which led to a 10 percent YoY increase in office rental income. The retail portfolio also continued its, momentum and reported 12 percent growth in rental income. The total revenue stood at INR 15 billion. Occupancy across the non-SEZ/SEZ portfolio remained flat QoQ at 97 percent /86 percent. The retail portfolio was almost fully leased with 99 percent occupancy. Further, 3.1 MSF is under construction across existing assets in Gurgaon and Chennai and is 85 percent pre-leased including the hard option. Once delivered in 1HCY25, exit rentals are likely to rise to INR 60 billion.
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Sanjeev Kathuria Vinod Behl Chandra Rijwani DLF Limited Motilal Oswal Financial Services Ltd DLF Cyber City Developers Ltd. Amarjeet Pandey Prashant Pandey Swati Pandey Raman Kaur Lucky Rana Manu Kapila Nitin Bajaj Manish Lamba