Real estate major DLF Ltd reported a net profit of Rs 487 crore, reflecting a 28 per cent year-on-year (YoY) increase.
At the end of the second quarter (Q2), the company’s revenue stood at Rs 1,360 crore and net debt at Rs 2,142 crore, said the company.
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at Rs 495 in Q2.
DLF’s residential business also saw an yearly growth of 36 per cent and clocked new sales bookings of Rs 2,052 crore. However cumulative new sales for the first half of this financial year stands at Rs 4,092 crore.
Moreover, housing demand remained buoyant during the quarter and a shift in demand for larger homes was witnessed in the luxury segment, said the company.
Following the strategy of bringing low rise developments, the developers also launched three new products across multiple price segments. The three new products are ‘The Grove’ in DLF5, Gurugram, ‘The Valley Gardens’ in Panchkula and ‘Garden City Enclave-Independent floors’ in Sector 93, Gurugram.
During the quarter, total cumulative sales out of these new launches were of Rs 1,315 crore and sustained momentum of demand was also seen across ‘The Camellias’ under luxury segment led to incremental sales booking of Rs 473 crore.
As per Q2 results, the company’s surplus cash generation stood at Rs 409 crore before net outflow of Rs 292 crore on account of increased dividend payout.
DLF’s retail business also exhibited steady recovery with improvement in occupancies in the office portfolio.
Driven by a strong growth in retail revenues, rental income grew 20 per cent yearly.
“We continue to witness a steady uptick in occupiers’ attendance across the portfolio along with gradual recovery in our leasing momentum. The ‘First Phase (1.7 msf)’ of our next-generation workplace – DLF Downtown, Gurugram has commenced operations and has now started contributing to the rental portfolio. The office area for this asset was completely pre-leased even before the commencement of operations,” said the company.
Net profit for the retail business was at Rs 355 crore, reflecting a YoY growth of 54 percent, the company said.
In the second quarter, the firm’s retail business EBITDA saw a growth of 21 per cent YoY and stood at Rs 1,046 crore and revenue continued to grow at 22 per cent YoY. As per quarterly updates, consolidated revenue stood at Rs 1,369 crore as compared to Rs 1,123 crore last year.
“We continue to have a positive outlook towards the office business and hence continue to judiciously put more capital to fuel growth in this business,” said the company in its quarterly updates.
The real estate company has initiated development of an additional office block in DLF Downtown, Gurugram and the development of DLF Downtown in Chennai remains on track.
Sales growth has been better compared to pre-covid levels and similar trends are expected in the near future given the sustained demand and the upcoming festival season, said the company.