DLF chief lists three key drivers of business
New Delhi: DLF Ltd, the leading realty company, is concentrating on several key elements to drive its business forward, stated MD Ashok Tyagi in a recent conference call with market analysts. The primary growth engines for the company are identified as strong pre-sales of luxury homes, enhanced profit margins, and rising rental income from commercial properties.
Tyagi expressed confidence that DLF would successfully harness these growth drivers. The company, which is the largest real estate firm in India by market capitalization, recently sold properties worth Rs 4,457 crore in the first half of the fiscal year. Moving forward, DLF aims to achieve around Rs 20,000 crore in sales bookings by 2026-27.
CFO Badal Bagri highlighted that DLF's strong performance in the September quarter was a testament to the company's asset quality, disciplined execution, brand strength, and prudent capital allocation. The CFO emphasized that DLF's revenue recognition policy—recognizing revenue only upon the completion of residential projects—has contributed to its robust cash generation and balanced financials.
In its latest quarterly report, DLF witnessed a 10% increase in net profit to Rs 1,301.35 crore in the second quarter, driven by lower expenses and strong performance in the year-ago period. Total income also rose to Rs 2,297.30 crore, reflecting other income growth. However, sales bookings dropped to Rs 3,800 crore, attributed to less fresh housing inventory supply, despite the luxury senior living project's complete sell-out.
DLF's super-luxury project, The Dahlias, continues to attract strong demand. The company's operating cash flow reached Rs 1,858 crore, while its net cash position stood at Rs 15,084 crore, despite a significant dividend outflow of Rs 1,980 crore. With over 185 real estate projects developed so far, covering 352 million square feet of area, DLF boasts a large rental commercial real estate portfolio of approximately 50 million square feet and 275 million square feet of development potential across residential and commercial segments.
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