DLF Q3 post-tax profit up 8.7% to Rs 440 cr, operating revenue rise 15%

The Delhi-headquartered firm's operating revenue grew 15 per cent YoY to Rs 1,543 crore from Rs 1,342 crore as new residential unit sales improved
Real estate major DLF today reported a 8.7 percent year-on-year growth in its profit after tax (PAT) to Rs 449 crore for the October-December quarter. It's net profit surged from Rs 413 crore in the corresponding quarter previous year, the firm said.

The Delhi-headquartered firm's operating revenue grew 15 percent yoy to Rs 1,543 crore from Rs 1,342 crore as new residential unit sales improved. On a standalone basis, DLF's sales recorded sharp recovery from last year. While in October-December 2019 it had reported Rs 665.2 crore in sales, in last quarter it's surged to Rs 1,303.2 crore - growing 96 percent yoy.

The company said in a statement that after massive loss in business during the first half of FY2021, "demand in the residential business is improving, aided by a low-interest cost regime, various government incentive initiatives and quality supply with affordability".

During the quarter, DLF launched independent floors in DLF City, which was absorbed in record time. New Sales bookings for the quarter rose to Rs 1,022 crore, reflecting a 40 percent yoy growth.

While DLF is accelerating new launches and is focused on creating a healthy pipeline of diversified offerings, it is also tightening costs. During the quarter, it added Rs 115 crore in cash flow, while it's net debt was brought down by Rs 5,100 crore.

Collections in its office business remained strong, at 98 percent, while it's overall retail business is witnessing steady recovery. "All our malls are witnessing increased footfalls and better spend per footfall", it said.

During the quarter, DLF Cyber City Developers entered into a securities purchase agreement with funds managed by Hines for acquisition of their stake in Fairleaf Real Estate, which manages One Horizon Center in Gurugram, for Rs.780 crore.

DLF CEO retires:

DLF Ltd. wholetime director and chief executive Rajeev Talwar is scheduled to step down from the positions on 31 March, the company informed the Bombay Stock Exchange today. Talwar, who has been a wholetime director at the realty major since February 2014, was later elevated to the position of CEO in August 2015. According to the company, the board of directors have today accepted Talwar's request for retirement from DLF.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel