DLF Q3 post-tax profit up 8.7% to Rs 440 cr, operating revenue rise 15%

Wholetime director and CEO Rajeev Talwar to step down on March 31

Real estate major DLF today reported a 8.7 percent year-on-year growth in its profit after tax (PAT) to Rs 449 crore for the October-December quarter. It's net profit surged from Rs 413 crore in the corresponding quarter previous year, the firm said.

The Delhi-headquartered firm's operating revenue grew 15 percent yoy to Rs 1,543 crore from Rs 1,342 crore as new residential unit sales improved. On a standalone basis, DLF's sales recorded sharp recovery from last year. While in October-December 2019 it had reported Rs 665.2 crore in sales, in last quarter it's surged to Rs 1,303.2 crore - growing 96 percent yoy.

The company said in a statement that after massive loss in business during the first half of FY2021, "demand in the residential business is improving, aided by a low-interest cost regime, various government incentive initiatives and quality supply with affordability".

During the quarter, DLF launched independent floors in DLF City, which was absorbed in record time. New Sales bookings for the quarter rose to Rs 1,022 crore, reflecting a 40 percent yoy growth.

While DLF is accelerating new launches and is focused on creating a healthy pipeline of diversified offerings, it is also tightening costs. During the quarter, it added Rs 115 crore in cash flow, while it's net debt was brought down by Rs 5,100 crore.

Collections in its office business remained strong, at 98 percent, while it's overall retail business is witnessing steady recovery. "All our malls are witnessing increased footfalls and better spend per footfall", it said.

During the quarter, DLF Cyber City Developers entered into a securities purchase agreement with funds managed by Hines for acquisition of their stake in Fairleaf Real Estate, which manages One Horizon Center in Gurugram, for Rs.780 crore.

DLF CEO retires:

DLF Ltd. wholetime director and chief executive Rajeev Talwar is scheduled to step down from the positions on 31 March, the company informed the Bombay Stock Exchange today. Talwar, who has been a wholetime director at the realty major since February 2014, was later elevated to the position of CEO in August 2015. According to the company, the board of directors have today accepted Talwar's request for retirement from DLF.