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Informist, Saturday, Oct. 26, 2024

--DLF: Confident of launching Mumbai project in Jan-Mar

--CONTEXT: Comments by DLF's management in post-earnings analyst concall

--DLF: FY25 rental, other income exit likely INR 50 bln, as guided earlier

--DLF: FY26 rental, other income exit likely INR 58 bln

--DLF: NCR will continue to be the central gravity for our launch pipeline

--DLF: Anticipate collections of INR 25 bln in Oct-Dec

By Rajesh Gajra

MUMBAI – DLF Ltd.'s cash collections in the December quarter are likely to be over INR 25 billion, the company's management said in a post-earnings conference call with analysts and investors Saturday. In Oct-Dec 2023, DLF had recorded cash collections of INR 25.16 billion. In Jul-Sept, the National Capital Region-focussed real estate company received cash collections of INR 23.70 billion, slightly higher than INR 23.59 billion in the year-ago quarter.

DLF's rental subsidiary DLF Cyber City Developers Ltd. is likely to record rentals, including other income, of INR 50 billion in 2024-25 (Apr-Mar) and an additional INR 3 billion rental revenue is likely to come from the parent company, the management said during Saturday's call. For FY26, the company estimates the total revenue of its rental subsidiary at INR 58 billion. An additional INR 10 billion is likely to be generated by the parent company in FY26. But given the parent company's 67% share in Atrium Place property, the revenue taken on its books from the estimated INR 10 billion for FY26 will be about INR 8 billion.

In the conference call, DLF's management said the company looked strong for the launch of its Mumbai project in Jan-Mar, and does not anticipate any state election code-related hiccups in the approvals process. It said that approvals for this project in Mumbai and another in Goa were in the final stages. The Mumbai project is already delayed by a quarter, as the company management had on Jul 26, in an analyst call after the June quarter earnings, said that the launch target for the project was December. In the Jul 26 call, the company had also said that the first slum rehabilitation building of about 35 storeys was ready and the shifting of tenement dwellers was to begin.

With regard to diversification of areas for new projects and land acquisitions, the company's management said in the call that the company's focus continues to be NCR. It said, "NCR will continue to be the central gravity for our launch pipeline." The management said the company had a "significant growth pipeline in Chandigarh" and "will continue to expand in places like MMR".

The management rejected the accusation of concentration risk given its reliance on NCR projects. "NCR potentially (will be) not only the country's but possibly...the world's largest metropolitan area in the next five years and I think we must stay focused on that," it said.

Asked about competitors from outside NCR showing interest in the region and aggressively buying land there, the management said that for DLF, the "one most important thing" was "support from our existing customers". It said it had a specific team on the ground which "for the last almost four years all they do daily is to make sure that our existing customers' interests are kept protected". The company would "rather look inwards" and look to make sure that its customers were satisfied, the management said.

On Friday, shares of DLF ended 3% lower at INR 777 on the National Stock Exchange.  End

Edited by Avishek Dutta

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