February 26, 2024 |
Dlf to Launch Properties Worth Rs 80,000 Crore in 4 Years to Encash Surge in Demand
Realty major DLF plans to launch properties worth nearly Rs 80,000 crore over the next 3-4 years to tap rising demand for housing and commercial projects. DLF, the country’s largest real estate firm in terms of market cap, sold properties worth Rs 15,000 crore during 2022-23 and is set to surpass this number in the current fiscal going by sale bookings clocked in the first three quarters.
According to an investors’ presentation, DLF is aiming to launch 10 million square feet of area in the next financial year having revenue potential of Rs 32,000 crore. It has also identified another 22 million square feet area with an estimated revenue of Rs 46,850 crore for the 2024-25 fiscal and beyond.
Most of the projects to be launched for sale over the next 3-4 years would be residential and that too in luxury and ultra-luxury segments. Delhi-NCR, Mumbai, Goa, and Chennai would be the focus area of the company.
Recently, DLF Group Chief Financial Officer (CFO) Vivek Anand told analysts that the sustained demand momentum across all segments continues to be encouraging. “Consequently, we have identified a fresh pipeline of new products of approximately 32 million square feet with a sales potential of approximately Rs 79,000 crore, which is more than double of what we have delivered during the last 3 to 4 years and is in line with our plans of scaling up the business,” he said.
Anand informed that the company expects to launch these projects over the next 3-4 years. “The key launch that we are working on for the next 12 to 15 months are products in Gurugram, Chennai, Goa, and the first phase of our Mumbai project,” he said.
DLF’s plan to scale up its residential business comes against the backdrop of a sharp rise in demand after the second wave of the COVID-19 pandemic in 2021. Housing demand in primary (first sale) markets of major cities has been very strong. The demand is also getting consolidated towards those players who have a good track record of delivering projects to customers.
Riding on this surge in demand, DLF’s sale bookings doubled annually to Rs 13,316 crore during the first nine months of this fiscal. During the April-December period of the previous fiscal, the company’s sale bookings stood at Rs 6,599 crore.
The company reported more than three-time increase in sales booking to Rs 9,047 crore in the December quarter as against Rs 2,507 crore in the year-ago period. This is the highest quarterly sales booking achieved by the company.
The record sale bookings in the third quarter were mainly driven by sales of 1,113 luxury apartments in Gurugram for Rs 7,200 crore within three days of the pre-launch which happened in late December. On financial performance, DLF reported a 27 percent increase in consolidated net profit to Rs 655.71 crore for the December quarter, boosted by higher income and lower expenses.
Its profit stood at Rs 517.94 crore in the year-ago period. Total consolidated income rose to Rs 1,643.51 crore in the third quarter of the current fiscal from Rs 1,559.66 crore in the same period a year ago.
DLF has around 215 million square feet of development potential across residential and commercial segments. The group has an annuity portfolio of over 42 million square feet.
Source : Money Control
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