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    DLF shares gain 7% as demand picks up in September quarter

    New sales bookings for the quarter rose to Rs 853 crore as compared to Rs 152 crore in the previous quarter, it said.

    DLF Realty | Buzzing stocks | MARKETS TODAY

    SI Reporter  |  Mumbai 

    Firm hopes luxury home sales to bounce back in a few quarters 	Photo: Bloomberg
    In the July-September quarter (Q2FY21), the development business demonstrated strong operations.

    Shares of DLF moved higher by 7 per cent to Rs 170 on the BSE in intra-day trade on Monday after real estate developer said the residential business was witnessing green shoots of demand with consumer interest witnessing rising trends.

    The real estate developer believes that consistent quality supply in conjunction with affordability will lead to the overall recovery in demand. Covid-19 has impacted the economy and the market sentiment in the short term. However, DLF remains optimistic about its business and its growth returning to normalcy.

    In the July-September quarter (Q2FY21), the development business demonstrated strong operations. New sales bookings for the quarter rose to Rs 853 crore as compared to Rs 152 crore in the previous quarter, it said.

    Meanwhile, in Q2FY21, DLF reported a nearly three-fold sequential jump in its consolidated revenue at Rs 1,723 crore, as compared to Rs 646 crore in Q1FY21. The company posted a net profit of Rs 236 crore against a net loss of Rs 72 crore in the previous quarter. Ebitda (earnings before interest, taxes, depreciation, and amortisation) stood at Rs 576 crore compared to Rs 100 crore in the previous quarter.

    The retail segment is witnessing gradual recovery with the luxury segment exhibiting better trends. With all DLF’s retail properties now open and restrictions lifted for multiplexes and entertainment zones, the management expects an increase in footfalls leading to recovery. The festive season might provide the required fillip for this segment, it said.

    DLF has a strong pipeline of 35 million square feet to be launched within 18 months. Analysts at Antique Stock Broking expect DLF to launch independent floors in DLF city in the immediate term, and remaining over the next 18 months. Excluding Hines JV project and NOIDA IT Park, DLF has 28.5 million square feet of for – sales project pipeline predominantly in Gurugram including plotted development, low/mid-rise, and group housing; across price points from Rs 7.5 million to Rs 25 million, it said.

    The brokerage firm expects the rental portfolio to continue to do healthy business with increasing rental incomes. The development company is at an inflection point. The development company is expected to monetise completed inventory at a steady pace, generating steady cashflows whereas launches of new projects (with a pipeline of 28.5 mn sqft) across price spectrum to drive significant volume going forward, it said in result update.

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    First Published: Mon, November 02 2020. 12:29 IST