DLF targets Rs 13,000 crore sales bookings in FY23, achieves zero net debt

Realty major DLF on Tuesday said it is targeting sale bookings of about Rs 13,000 crore during this fiscal year on strong demand and also announced it has achieved zero net debt during the September quarter. The company has achieved a 9 per cent growth in sale bookings to Rs 2,228 crore during the second quarter of this fiscal from Rs 2,052 crore in the year-ago period. In the first quarter, the sale bookings were flat at Rs 2,040 crore.

Strong Sales Bookings

In an investors call, DLF MD Ashok Tyagi said, "We have given a sales bookings guidance of Rs 12,000-13,000 crore for this fiscal year." In the first six months of this fiscal year, DLF achieved sales booking of Rs 4,268 crore. The company is confident of achieving the target as it will launch many new projects by March. With a rise in prices of luxury properties, especially in Gurugram, Tyagi said there is an upside risk of exceeding the sale bookings target.

Zero Net Debt

On debt, Tyagi said the company has hit the zero debt mark. According to the investors presentation, the company has a net cash positive of Rs 142 crore. Its gross debt stood at Rs 3,012 crore at the start of the second quarter and the company took a fresh debt of Rs 12 crore during July-September. With cash in hand of Rs 3,165 crore, the company has a net cash positive of Rs 142 crore.

Robust Demand for Luxury Properties

During the September quarter, DLF said, it sold 14 units at its super-luxury housing project The Camellias for Rs 720 crore. The company sold commercial units worth Rs 160 crore. DLF Group Executive Director and Chief Business Officer Aakash Ohri told analysts that prices of apartments in the luxury project have increased in the last few years and are ruling at about Rs 75,000 per square foot for lower floors. The rates for upper floors are higher by around 20 per cent. In the secondary market, there are reports of a deal concluding at nearly Rs 1 lakh per square foot recently.

Continued Growth Momentum

DLF said it continues to see sustained demand momentum across all segments and hence keeps a positive outlook on the housing cycle. "Our new product launches that have been planned for the second half of the fiscal remain on track and we remain committed to bringing calibrated supply across our key markets and leverage this growth cycle," the company said.

Strong Financial Performance

On Monday, DLF reported a 31 per cent rise in consolidated net profit to Rs 622.78 crore for the second quarter of this fiscal year on higher revenue. Its net profit stood at Rs 477.04 crore in the year-ago period. Total income increased to Rs 1,476.42 crore over Rs 1,360.30 crore in the corresponding period of the previous year. During the April-September period of this fiscal, DLFs net profit rose to Rs 1,149.78 crore from Rs 946.61 crore in the year-ago period. Total income grew to Rs 2,998.13 crore in the first six months of this fiscal from Rs 2,876.78 crore in the corresponding period of the previous year.

DLF's Real Estate Portfolio

DLF has developed more than 158 real estate projects and an area in excess of 340 million square feet. It has about 215 million square feet of development potential across the residential and commercial segments. The group has an annuity portfolio of over 42 million square feet. Its rental assets are parked into DLF Cyber City Developers Ltd DCCDL, a joint venture with Singapore sovereign wealth firm GIC.

DLF's strong financial performance and robust demand for its properties indicate that the company is well-positioned to achieve its targets and continue to grow in the coming quarters.