Real estate major DLF Ltd on July 26 reported a consolidated net profit at Rs 337.17 crore in the first quarter of this financial year on higher revenue on the back of encouraging demand for homes during the COVID-19 pandemic, the company said.
New sales bookings exhibited sustained performance sequentially and stood at Rs 1,014 crore, reflecting a Y-o-Y growth of 567 percent, the company said.
Consolidated revenue of the company stood at Rs 1,041 crore as compared to Rs 929 crore last year, the company said.
“We are witnessing encouraging demand in the residential business. Since the pandemic, the inherent demand for homes has gone up, it has reaffirmed that home is the safest place and is an important asset class for most families. New sales bookings exhibited sustained performance sequentially and stood at Rs 1,014 crore, reflecting a Y-o-Y growth of 567 percent,” it said.
The launch of independent floors across Gurgaon continues to garner an enthusiastic response from the market and exhibited healthy absorption trends, it said.
The company clocked new products sales booking of Rs 542 crore during the quarter. The luxury segment remains attractive, with Camellias witnessing sustained demand despite the resurgence of the pandemic, it said.
“We remain enthused with this growing demand in the residential markets and expect this growth cycle to continue in the long run. With this strong outlook and all fundamental drivers supporting the residential segment, we continue to focus on bringing new product offerings across segments and geographies,” the company said.
The company had posted a net loss of Rs 71.52 crore in the year-ago period.
Total income nearly doubled to Rs 1,242.27 crore in the April-June quarter of 2021-22 financial year from Rs 646.98 crore in the corresponding period of the previous year, DLF said in a regulatory filing.
DLF's share ended almost flat at Rs 334 apiece on BSE on July 26.
“We continue to focus on improving our collections and tight cost control measures have led to surplus cash generation of Rs 141 crore during the quarter. Consequently, our net debt stood at Rs 4,745 crore,” the company said.
The company’s rental business continued its sustained performance. Office rental grew 12 percent Y-o-Y while the retail segment has been impacted again.
The rental business is facing a temporary dislocation, the company said.
With the government leading the vaccination drive and allowing corporates also to do so, it is expected that the vaccinated staff of corporates will start returning to work gradually over the next few months. The demand for office space is expected to return in the second half of the year. We believe that the long-term fundamentals for this business remains intact, the company said.
The retail business is witnessing some short-term dislocations with intermittent local lockdowns. All our malls are now operational, though, with certain restrictions. Since the opening of these malls, we are witnessing a steady increase in the footfalls, mirroring the trend of the second half of FY 21.
“We continue to maintain a positive outlook on the sector and remain committed to bringing new products to the market. Our new product pipeline, quality assets and strong balance sheet have enabled us to overcome any temporary dislocations. We are optimistic about this new growth cycle and remain well poised to leverage opportunities to scale up,” it said.
New product development remains on track. We continue to work on getting DCCDL REIT ready and expect completion of this by fiscal end.
DLF is India's leading real estate developer and has more than seven decades of track record of sustained growth, customer satisfaction, and innovation.
DLF has developed 153 real estate projects and developed an area of approximately 330 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 35 msf (approximately).
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