Analyst Concall
Did not put all Dahlias inventory for booking Oct-Dec - DLF
This story was originally published at 19:54 IST on 27 January 2025
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--DLF: Gururgam realty mkt no more just a geography related story
--DLF: Good infra makes Gurugram more than a mere investment destination
--CONTEXT: Comments by DLF management in post-earnings analyst call
--DLF:NRIs accounted 12% of new bookings in Dahlias Gurugram project Oct-Dec
--DLF: Co's Mumbai, Goa projects still under approval process
--DLF: See arm DLF Cyber City's rental income at INR 63 billion in FY26
--DLF: Short-term aim is to use strong cash balance to reduce debt
--DLF: Higher floors of Dahlias not offered in booking inventory in Oct-Dec
--DLF: See co's own rental business income at INR 8 billion in FY26
By Arya S. Biju and Rajesh Gajra
MUMBAI – The entire inventory of 420 residences was not offered in the opening phase of bookings of the super luxury residential project--The Dahlias--in Gurugram, in the December quarter, the management of DLF Ltd. said Monday in a post-earnings conference call with analysts. The higher floors were not under offer in the opening phase; they will come in different phases but a buyer may pick up right now a higher floor at future price point, the management of the Delhi-NCR real estate company said.
"Every apartment (in The Dahlias project) is priced differently," the management said. The Dahlias was launched during the December quarter and it registered new sales bookings for 173 units, or residences, in the opening phase during the quarter. The company registered booking value of INR 118.16 billion for the project, but the actual collections from the project bookings were much lower at INR 12.27 billion.
The balance receivable from the December quarter sales bookings for The Dahlias was INR 105.88 billion, according to data from the company's post-earnings investor presentation. The management said non-resident Indians contributed about 12% of the news sales bookings in The Dahlias project.
"About 50% has been the community (living in existing DLF properties in Gurugram), friends and family...(and) their references," the DLF management said. The estimated unsold or balance inventory for The Dahlias project, in value terms, was over INR 230 billion, according to the investor presentation.
Answering a question about the demand situation in Gururgam, Aakash Ohri, the joint managing director and chief business officer of the company, said the realty market in Gururgam is maturing in terms of demand. Gurgaon is no longer a geography-related purchase story and an investor's market, Ohri said. The quality of life will improve with the planned infrastructure in the area, and people will want to come and live here, Ohri said. He also expects this trend to continue going forward.
On demand in Mumbai and Goa, Ohri said the company is seeing good demand and reasonable price expectations. "...overall, I think there is a good amount of excitement for a dealer product to come into Mumbai. It's a super luxury project in Goa... and that has its own set of demand," Ohri added.
Currently, DLF's luxury residential project in Gurgaon, Privana Phase 3, and the Mumbai and Goa projects are under approval process, the management said. The company expects to receive approval for the Mumbai project in the upcoming weeks, while the other two projects are expected to spill over to the next financial year.
DLF expects rental income from its rental arm DLF Cyber City Developers Ltd. for 2025-26 (Apr-Mar) to be around INR 63 billion from INR 63.15 billion, while the parent company's rental business income is expected to be INR 8 billion. DLF Cyber City Developers' office rental income increased 10% on year and retail revenue was up 9% in the December quarter, DLF said in its investor presentation after announcing Oct-Dec earnings.
On future plans, the company said its short-term goal would be to use cash surplus to reduce debt. DLF had an operating cash surplus of INR 18.50 billion for the December quarter and a gross opening debt of INR 39.88 billion. The company reversed a tax liability of INR 9.32 billion in the December quarter on account of a change in the effective tax rate on long-term capital gains. The amount is in the process of getting paid out and will be visible in Jan-Mar as cash outflow, the management said.
The company said it is not planning further investments. However, the company said it will invest if it finds something interesting or cost-effective. The company has enough land banks in Gurugram, Delhi, and Chandigarh, the management said. Further, through the Mumbai project, the company is expanding its presence in the area.
DLF announced its results post-market hours Friday. DLF reported a consolidated net profit of INR 10.59 billion in Oct-Dec, up 61% on year and significantly above the Streets' estimate of INR 8.06 billion. The company reported a 0.5% on-year increase in its consolidated revenue to INR 15.29 billion for the December quarter. This was much below analysts' estimate of INR 17.86 billion. Monday, shares of the company closed at INR 703.90 on the National Stock Exchange, up 1.2%. End
Edited by Akul Nishant Akhoury
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