DLF is expected to report a 15.9 percent decline (year-on-year) in profit at Rs 122 crore for October-December quarter. The real estate major will announce its earnings on Monday.
According to a CNBC-TV18 poll, revenue is likely to increase 4 percent Y-o-Y to Rs 2,141 crore. Operating profit may jump 26 percent to Rs 769 crore and margin may expand 620 basis points to 35.9 percent during the same period.
What to watch out for
Analysts expect sequential improvement in earnings due to some projects achieving revenue recognition. Partial revenue booking is expected for the Sky Court project.
New launches in Capital Green and Ultima could lead to better sales and margins than previous quarters.
Analysts expect pre-sales to increase marginally to 0.7 million square feet from 0.6 million square feet on sequential basis. Pre-sales value is expected to be muted at Rs 1,000 crore during the quarter compared to Rs 920 crore in previous quarter as DLF launched projects for pre-sales at lower price than in the past due to weak demand in NCR.
Realisation of the real estate company is expected at Rs 11,429 per square feet in Q3 against Rs 15,082 per square feet in Q2FY15.
Debt may increase in Q3 due to weak operations, negative cash flows and no asset sales.
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