BackDLF's Q2 net profit declines 49% to ₹228 cr
Demand uptick in the residential business will lead to recovery, it saidNew sales bookings for the September quarter rose to ₹853 crore from ₹152 crore in the preceding quarter
PremiumDLF Ltd, India’s largest real estate developer, on Friday reported ₹227.5 crore net profit in the September quarter, down 48.68% from a year ago.
Sequentially, however, DLF recovered from the ₹71.52 crore loss in the June quarter, when the lockdown to contain the spread of coronavirus halted construction activity.
The profit came on a 11.18% fall in revenue to ₹1,723.09 crore during the September quarter.
The residential business is seeing green shoots of demand and quality supply combined with affordability will lead to overall recovery, DLF said.
The developer, whose rental arm DLF Cyber City Developers Ltd (DCCDL) houses its commercial office portfolio, said it is taking steps to get the rental business ready for a real estate investment trust.
New sales bookings for the September quarter rose to ₹853 crore from ₹152 crore in the preceding quarter.
“We are getting ready for a new build-out cycle and have identified a strong pipeline to be launched across various segments and geographies over the next few years," the company said. “Our long-term outlook towards the rental business remains positive," it said.
DLF said its office business remains stable and continues to exhibit strong rent collection of 98% levels. Cyber Park, a 2.5 million sq. ft commercial development in Gurugram, started operations from August.
“The retail segment is witnessing gradual recovery. With all our retail properties now open and restrictions lifted for multiplexes and entertainment zones, we expect an increase in footfall leading to recovery. We expect the festive season to provide the required fillip for this segment," the company said. “We continue to deliver significant reduction of overheads enabling margin improvement in the times ahead," it said.
DLF has been firming up plans to launch mid-income housing in the ₹60-80 lakh category, as demand for homes in this segment is good in a relatively tepid residential market, Mint reported in September.
In one of the largest lease rental discounting transactions this year, DCCDL recently raised ₹2,400 crore from State Bank of India against office projects in Gurugram and Chennai. The bulk of the loan, DLF said, will be used to refinance existing debt while the remaining will be used to fund future expansion.
In August, DLF and its joint venture partner Hines said they have raised a construction loan of ₹2,600 crore from HDFC Ltd to develop an office project in Udyog Vihar, Gurugram.
DLF has an operational rental asset portfolio of around 35 million sq. ft across the country.
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