DLF gains after announcing Q4 results

DLF rose 0.16% to Rs 123.55 at 10:15 IST on BSE after consolidated net profit fell 21.87% to Rs 171.62 crore on 16.67% decline in total income to Rs 2101.16 crore in Q4 March 2015 over Q4 March 2014.

The Q4 result was announced after market hours yesterday, 20 May 2015.

Meanwhile, the S&P BSE Sensex was down 39.17 points or 0.14% at 27,798.04.

On BSE, so far 3.02 lakh shares were traded in the counter as against average daily volume of 9.97 lakh shares in the past one quarter.

The stock hit a high of Rs 125.90 and a low of Rs 122.10 so far during the day. The stock had hit a 52-week high of Rs 242.80 on 9 June 2014. The stock had hit a 52-week low of Rs 100 on 16 October 2014.

The stock had underperformed the market over the past one month till 20 May 2015, falling 15.69% compared with Sensex's 0.18% fall. The scrip had also underperformed the market in past one quarter, declining 18.47% as against Sensex's 4.77% fall.

The large-cap real estate developer has equity capital of Rs 356.39 crore. Face value per share is Rs 2.

DLF's consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) fell 8% to Rs 843 crore in Q4 March 2015 over Q4 March 2014.

DLF said that the board of directors of the company at its meeting held yesterday, 20 May 2015, inter alia, has recommended a dividend of Rs 2 per share for the year ended 31 March 2015 (FY 2015).

In the year gone by, the ensuing high interest rates and consequent low consumer demand have adversely impacted the real estate sector in the country. Despite the continued headwinds, the company witnessed enthusiastic response for its luxury segment products in DLF5 viz. the Camellias and the Crest. Compared to the residential business, the business of leasing offices and retail malls showed much better traction and decent growth of 1.5 million square feet (msf).

The government has taken both legislative and executive measures to revitalise the economy which include modifying foreign direct investment (FDI) policies for various industries, de-bottlenecking and targeting higher infrastructure spend and plans to create smart cities.

With Real Estate Investment Trust (REIT) policy clarity in place and the recent measures taken by the Government to address certain impediments pertaining to tax issues, a whole new avenue has emerged for the sector to generate long term free cash flows and recycle capital for further growth. Subject to requisite approvals, the company is gearing itself to set up at least one REIT platform within the year ending 31 March 2015 (FY 2015).

In order to keep debt at manageable and comfortable levels, especially in the DevCo, the company is in talks with certain strategic investors for setting up Joint Ventures at the project level for its residential business. This will enable the company to unlock some of the embedded value in land today itself by sharing future financial returns with the investors, DLF said.

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