DLF to introduce new projects worth ₹3,500 crore

28 Oct 2022 CW Team

DLF plans to launch new projects worth Rs 35 billion during the second half of this fiscal, primarily in Gurugram and Panchkula, in order to capitalise on rising demand.

DLF stated in an investor presentation that the company intends to launch residential projects in Gurugram and Panchkula by March 2023, pending approval from authorities. The company intends to launch approximately 3 million square feet of residential projects.

Aside from that, DLF has completed inventories worth Rs 32.22 billion and properties worth RS 56.22 billion in the projects that are currently under construction.

"Product potential (near term) ~ ₹123.5 billion" DLF said in the presentation, after taking into account the inventories available for sales currently and projects to be launched in the second half of this fiscal year.

Regarding operational performance, DLF reported that its sales bookings increased 62% year over year between April and September, going from $2,526 crore to $4,092 crore. For the current 2022–23 fiscal year, DLF Ltd. has predicted sales bookings at 8 billion, a 10% increase from the prior fiscal. In the fiscal 2021–22, its sales bookings increased to 72.73 billion. The same was $3,084 crore the year before.

"We remain optimistic on the inherent growth potential in the housing sector on the backdrop of rising aspirations of the communities for well-designed, high-quality products across established ecosystems," DLF said, adding that it has received good response to new products like low-rise independent floors across multiple markets.

It seeks to maintain this growth trajectory by consistently providing distinctive products across various market segments.

The real estate firm added that it would keep concentrating on generating more cash through ongoing momentum in completed inventory sales and new offerings. For the quarter that ended in September, DLF's consolidated net profit increased by 26% to 4.77 bn. In the same quarter a year ago, its profit was 3.79 billion rupees.

In the second quarter of this fiscal year, the company's total revenue decreased to 136.5 billion. It was $1,556.53 billion during the same time period the year before. In a statement following the results, DLF had claimed that additional industry consolidation had taken place against the backdrop of shifting consumer preferences toward high-quality offerings from well-established players.

"The interest rate hike was on expected lines. We continue to closely monitor these developments, however, have not experienced any material impact on housing demand so far," it had said.

According to market capitalization, DLF is India's largest real estate company. Over 153 real estate projects totaling 330 million square feet have been created by it.

The business can develop 215 million square feet in both the residential and commercial sectors. Over 40 million square feet are in the annuity portfolio of the DLF Group.

The company's main lines of business are the development, construction, and sale of residential real estate (the "development business"), as well as the creation, construction, and leasing of commercial and retail properties (annuity business).