DLF rose 2.27% to Rs 142.05 at 10:05 IST on BSE after the company said consolidated net profit rose 9% to Rs 109 crore on 4% decline in consolidated revenues to Rs 2136 crore in Q2 September 2014 over Q2 September 2013.
The company announced Q2 results after market hours Thursday, 13 November 2014.
Meanwhile, the S&P BSE Sensex was up 42.17 points or 0.15% at 27,982.81.
On BSE, so far 2.6 lakh shares were traded in the counter as against average daily volume of 21.44 lakh shares in the past one quarter.
The stock hit a high of Rs 143 and a low of Rs 140.75 so far during the day. The stock had hit a record 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 13 November 2014, falling 5.32% compared with the Sensex's 5.9% rise. The scrip had also underperformed the market in past one quarter, declining 28.48% as against Sensex's 7.8% rise.
The large-cap real estate firm has an equity capital of Rs 356.39 crore. Face value per share is Rs 2.
DLF's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 6.4% to Rs 918 crore in Q2 September 2014 over Q2 September 2013. Earning per share (EPS) for the quarter stood at Rs 0.61.
The new Government at the Center has announced major thrust in the urban development sector through its vision of creating 100 'smart' cities across the country. This policy initiative can revolutionize urban India and augurs well for the future growth potential of the company. In order to facilitate the creation of these 'smart cities' and provide housing for all, the new Government has initiated many reforms. The Government has notified the REIT regulations; a potential game changer to unlock value from the rental assets. Further relaxation in FDI norms in the construction sector has also been announced. The Real Estate (Regulation & Development) Bill, 2013 and the amendment in the Land Acquisition Bill are expected in the forthcoming winter session, company said.
The real estate market continues to remain muted in most of the micro-markets. With the policy and reform initiatives taken by the Government the company sees early signs of GDP growth which should result in the revival of consumer demand. The company sees early signs of green shoots of demand emerging, especially in its luxury development-Camellias in DLF 5, Gurgaon. During the Quarter, the company sold approx 0.20 million square feet (msf) of the project at an average realization of Rs 33,156 per sq. ft.
The company is fully geared up to ride the up-cycle with its inventory of finished valued in excess of Rs 4000 crore (approx) , unsold inventory of launched projects under construction worth Rs 13000 crore (approx) and future pipeline of projects worth Rs 7000 crore(approx), for which all approvals are in place.
Despite tough market conditions for the sector since the global financial crisis, the company has been able to create very valuable rental assets with current run rate of annuity incomes above Rs 2100. Given the recent notifications on the REITs, it has become incumbent upon the company to re-evaluate its strategic path and options to drive sustainable, long term growth and development of the rental business. Various options are being reviewed to harness the maximum potential. The company is committed to create one or more sizeable REIT platform either independently or in partnership with strategic/financials partners not only to harness the growth in the market but also to unlock / part monetise the company's investment. REIT platforms are expected to be a potential game changer as it unlocks value, aids spin-off of debt, and creates long term free cash flows in the form of dividends.
The company is gearing up for the second round of its CMBS offering, for which indicative ratings are in place. This large offering will help in improving the debt profile by reduction in interest costs and terming out the liabilities.
The company has filed an appeal with Securities Appellate Tribunal SAT, against the order passed by the SEBI. SAT has provided an interim relief to the company for redeeming mutual funds to the tune of Rs 1806 crore. The next hearing is scheduled for 10 December 2014.
The company wishes to reassure all stakeholders that it adheres to the highest standards of compliance and corporate governance and has not acted in contravention of law at any point of time. The company will defend itself to the fullest extent against any adverse findings and measures contained in the order and it has full faith in the judicial process and is confident of vindication of its stand in the near future. The company shall leave no stone unturned to meet its commitment to all the stakeholders, DLF said in a statement.
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