DLF shares rise 3% after real estate firm posts ₹623 cr Q2 profit

Shares of Gurugram-based DLF Ltd rose as much as 2.9% in opening trade on Tuesday after the real estate developer reported a 30% jump in its net profit at ₹623 crore for the quarter ended September.

The realty stock opened at ₹559 against its previous closing price of ₹554.45. Shares of DLF gained 2.9% to ₹570.55 on the National Stock Exchange (NSE), taking the company’s market cap to ₹1.39 lakh crore.

DLF's consolidated revenue stood at ₹1,476 crore in the second quarter, up from ₹1,360.3 crore in the year-ago quarter. Revenue from operations rose 3.5% to ₹1,347.7 crore compared with ₹1,302 crore in the corresponding period last year.

The realty firm clocked record surplus cash from operations at ₹1,147 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹591 crore while gross margins were at 57%

DLF says it continues to see sustained demand momentum across all segments and is keeping a positive outlook on the housing cycle.

New sales bookings for the quarter stood at ₹2,228 crore. “Our new products and existing inventory continue to evince strong customer interest. Our super luxury offering – The Camellias in DLF 5, Gurugram, saw healthy demand during the quarter and continues to set new benchmarks vindicating strong demand for high quality residential products backed by a strong brand,” the company says in its earnings release.

“Our new product launches that have been planned for the second half of the fiscal remain on track and we remain committed to bringing calibrated supply across our key markets and leverage this growth cycle,” it says.

Collections continued to remain healthy resulting in record cash flow generation during the quarter, according to DLF. Post dividend payout of ₹990 crore, the company achieved a net cash position of ₹142 crore at the end of the second quarter. “We have delivered on our commitment to achieving a Net Debt zero position. We will continue to further strengthen our Balance sheet through consistent cash generation,” it says.

The office portfolio continues its path of gradual recovery and the retail segment continues to deliver healthy growth. Q2 FY24 consolidated revenue of DLF Cyber City Developers Limited stood at ₹1,463 crore, reflecting year-on-year growth of 7%; consolidated profit for the quarter stood at ₹416 crore, a y-o-y growth of 17%.

“Our occupancy across the non-SEZ segment has inched back to 97%, demonstrating the high quality and inherent demand for such products, while SEZ occupancy stood at 85%. Our new office developments continue to garner occupiers’ interest and consequently have achieved a pre-leasing of 89% across our two new office complexes – DLF Downtown in Gurugram and Chennai,” the company says.

DLF says its retail business continues its growth trajectory. “Our progress towards expanding our retail offerings stays on track. We expect construction of our large retail complex in Gurugram to start during this fiscal,” it says.