DLF, the country’s largest real estate developer, recorded a consolidated net profit of Rs 2.48 billion in the fourth quarter of last fiscal year while profit stood at Rs 1.49 billion during the same period a year back. This year’s profit is a whopping rise of 66 per cent from the figure in the previous year.
Total income, however, fell to Rs 18.45 billion during the January-March quarter of last fiscal year from Rs 25.12 billion in the corresponding period of the previous year. The company, however, is bullish of the residential segment and believes that luxury home sales will bounce back in the next few quarters.
“The markets are expected to have bottomed out and a revival is on the cards in the medium term. The realty major plans to continue its focus on the premium and luxury segment to garner healthy margins. In the last two quarters, the firm achieved net sales of around Rs 10 billion and expects to sustain similar momentum in the current fiscal year,” it said.
The company has a ready-to-move in inventory of over Rs 150 billion.
Earnings per share (EPS) for the year stood at Rs 25.02. The board of directors also declared a final dividend of Rs 0.80 per share for the last fiscal year, subject to approval by shareholders. This is in continuation to the interim dividend of Rs 1.20 per share declared and paid during March.
DLF commenced work at the initial phase of the Midtown project located in Central Delhi, which covers an area of approximately two million square feet (msf). The total development potential of the project is approximately seven msf, which is expected to be completed over the next six years.
A few quarters ago, the real estate giant made it clear that it shifted its strategy and would only sell inventory which is complete and ready to move in. “According to the strategy of creating finished inventory to ride this up cycle in the residential segment, we remain committed to timely execution and have achieved completion of approx. 8.6 msf of projects in FY18,” it said.
The company’s commercial segment of business continued to exhibit good growth. It said that most of its commercial projects are seeing 100 per cent absorption rate and are bringing in good returns for the firm. Gross leasing achieved during the year stood at 6.76 msf. Out of this, 5.96 msf is attributable to the DCCDL Group.
The company hopes to see a jump of 30 per cent in the rental income as a large chunk of its commercial establishments would be up for re-leasing over the next few months.