Earnings Review
DLF Jul-Sept consol PAT growth highest in at least 15 qtrs
This story was originally published at 06:00 IST on 26 October 2024
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--DLF Jul-Sept consol net profit INR 13.81 bln
--Analysts saw DLF Jul-Sept consol net profit INR 6.62 bln
--DLF Jul-Sept consol net profit INR 13.81 bln vs INR 6.23 bln year ago
--DLF Jul-Sept consol revenue INR 19.75 bln vs INR 13.48 bln year ago
--DLF Apr-Sept consol net profit INR 20.27 bln vs INR 11.50 bln year ago
--DLF Apr-Sept consol revenue INR 33.37 bln vs INR 27.71 bln year ago
--DLF Jul-Sept new sales bookings INR 6.92 bln
--DLF Apr-Sept new sales bookings INR 70.94 bln
--DLF Jul-Sept gross margin 45%
--DLF Jul-Sept operating cash surplus INR 12.11 bln
--DLF: Outlook for residential business continues to be strong
--DLF: Rental business experiencing positive upturn
--DLF: Accelerated capex commitments to boost rental portfolio growth
--DLF: Have robust pipeline of new products across development, rental ops
By Arya S. Biju
MUMBAI – Real estate developer DLF Ltd. in its September quarter reported its highest net profit growth in at least 15 quarters, while also beating the Street's estimates. The company's consolidated net profit for the latest quarter more than doubled on year to INR 13.81 billion, surpassing analysts' estimate of INR 6.62 billion by a huge margin. The company's consolidated revenue from operations for the quarter was INR 19.75 billion, up 46.6% on year, and above analysts' estimate of INR 13.85 billion.
The net profit includes the reversal of deferred tax liabilities of around INR 6.1 billion, pursuant to a change in tax rate on long-term capital gains with enactment of the Finance Act, 2024, DLF said. The real estate devoloper's new sales bookings for the September quarter were valued at INR 6.92 billion.
The company's other income for the quarter rose 59.9% on year to INR 2.06 billion. Total expenditure of the company was INR 16.04 billion, up 58.5%. DLF's cost of land, plots, constructed properties, development rights and others in Jul-Sept was INR 10.80 billion, up 86.3% on year. The company's employee benefit cost was INR 1.65 billion, up 33.4%.
The new sales bookings during the reporting quarter fell 68.9% on year due to delay in receiving requisite approvals for new product launches, DLF said. New sales bookings for Apr-Sept were INR 70.94 billion, up from INR 42.68 billion a year ago. The company said it is on track to meet its guidance for 2024-25 (Apr-Mar). Total sales bookings of the company as of Sept. 30 were INR 457 billion.
The company's net cash position for the quarter was INR 28.31 billion, despite a higher dividend payout of 12.38 billion. DLF reported a healthy operating cash surplus for the quarter at INR 12.11 billion. The company's gross margin for Jul-Sept was 45%.
DLF's earnings before interest, tax, depreciation, and amortisation for the quarter was INR 7.08 billion, up 20% on year and higher than analysts' estimate of INR 3.81 billion. The company's EBITDA margin was 32% for the quarter.
The rental income for the quarter was INR 1.18 billion, up from INR 800 million in the June quarter. With the positive upturn in the rental business, the company has increased its capital expenditure towards the growth of its rental portfolio. DLF has started development of the subsequent phases of Downtown Chennai and Downtown Gurugram, totalling around 11 million square feet. The company said it is on track to achieve its short-term and long-term business goals and will maintain its positive outlook on the residential business. The development business of the company continues to see steady performance, DLF said.
For the six months to September, DLF's consolidated net profit was INR 20.27 billion, up 76.3% on year. The company's consolidated revenue for the period was INR 33.37 billion, up 20.4% on year. DLF said it believes that the company is well poised to leverage the "structural upcycle" backed by a land bank with high potential, a robust pipeline of new products across development and rental businesses, a strong balance sheet, and consistent cash flow generation.
DLF Cyber City Developers Ltd., a flagship company of the DLF Group, reported a consolidated revenue of INR 16.53 billion for Jul-Sept, up 13% on year, and a consolidated net profit of INR 5.21 billion, up 25% on year.
On Friday, shares of the company closed at INR 777 on the National Stock Exchange, down 3%. End
Edited by Tanima Banerjee
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