Shares of DLF gained 4 per cent at Rs 426.70 on the BSE in Wednesday’s intra-day trade after the company said it clocked sales worth approximately Rs 1500 crore for towers in the first phase of the newly launched luxury residential project, ONE Midtown.
The stock of the country’s largest listed real estate company had hit a 52-week high of Rs 449.80 on October 18, 2021. At 09:51 am; the stock traded 3.3 per cent higher at Rs 422.95, against 0.61 per cent rise in the S&P BSE Sensex. The trading volumes at the counter jumped 1.5 times with a combined 5.7 million shares changing hands on the NSE and BSE.
Located in West Delhi, ONE Midtown boasts of 4 towers soaring to 39 floors each, offering its residents panoramic views of the acres of greenery surrounding it. The 913 spacious and elegant apartments, come with a choice of two, three or four bedrooms. Available residences at ONE Midtown are priced at Rs 3 crore onwards.
In November, the rating agency ICRA had upgraded ratings of various instruments of DLF with outlook revised to stable from positive. The rating upgrade reflects DLF Limited’s robust sales and collections in H1FY2022, despite the lockdowns and disruptions created by the Covid-19 pandemic, which enabled the company in reducing the net debt significantly and improving the cash flow adequacy ratio to multi-year high levels.
The improvement in cash from operations and reduction in net debt has led to significant improvement in the Net Debt / FFO, to 1.3x3 as against 3.6x for FY2021. Additionally, the company continues to see healthy demand in its super luxury housing project – Camellias (Gurgaon, Haryana), and the newly launched independent floors projects in Gurgaon, Haryana, ICRA said in rating rational.
With most of the ongoing residential projects at intermediate or advanced stages of completion, execution risks for the ongoing projects remain limited as well. Going forward, any significant discretionary outflows towards land or other capital expenditure will also remain a key credit monitorable, the rating agency said.