DLF Limited , one of India's leading real estate developers, has reported a strong performance for the second quarter, with new sales bookings exceeding Rs 4,300 crore. The company's successful launch of 'The Westpark' project in Mumbai significantly contributed to this impressive figure.

Financial Highlights

• New sales bookings: Over Rs 4,300 crore for Q2
• Cumulative sales for H1: Over Rs 15,750 crore
• Collections: Rs 2,672.00 crore
• Consolidated revenue: Rs 2,262.00 crore
• EBITDA: Rs 902.00 crore
• PAT: Rs 1,171.00 crore (including one-time impact of ~Rs 600.00 crore from Tulsiwadi project settlement)

Debt Reduction and Dividend Payout

DLF continues to strengthen its financial position:

• Repaid Rs 963.00 crore of debt in Q2
• Outstanding debt reduced to Rs 1,487.00 crore as of September 30
• Paid Rs 1,485.00 crore in dividends (Rs 6.00 per share, 20% YoY growth)

Credit Rating Upgrade

CRISIL has upgraded DLF Limited's credit rating to AA+ with a Stable Outlook, reflecting the company's strong balance sheet, healthy cash flow generation, and sustained business performance.

Rental Business Performance

The company's rental arm, DLF Cyber City Developers Limited (DCCDL), showed robust growth:

• Rental income grew 15% YoY to Rs 1,362.00 crore
• PAT increased by 23% YoY

Project Updates

• The Westpark (Mumbai): Successful maiden launch, contributing significantly to Q2 sales
• Dahlias (Gurugram): Over 55% sold, with average realization exceeding Rs 1.00 lakh per sq ft
• Atrium Place (Gurugram): 2.10 million sq ft out of 3.20 million sq ft completed, with 1.90-1.95 million sq ft already leased

Future Outlook

DLF has outlined an ambitious launch pipeline for the next 18 months, including projects in Goa, Gurugram (Arbour 2), Panchkula, and additional phases of existing developments. The company aims to maintain its focus on margins and cash generation, with a potential launch value of Rs 1,15,000.00 crore over the next four to five years.

Management Commentary

Aakash Ohri, Joint Managing Director and Chief Business Officer, commented on the demand outlook: "For us, as far as we are concerned, I think we have a certain set of people we have created or have worked with for years, and I would like to believe that we will go back to them and their kith and kin and our extended relationships. DLF today is a very strong brand to reckon with and has become a good source of investment."

Ashok Tyagi, Managing Director, added: "This continues to be a good phase for us as a company and possibly for the industry as a whole. Residential, retail, and office leasing, all three verticals are continuing to do well."

DLF's strong Q2 performance, coupled with its strategic focus on high-quality developments and financial prudence, positions the company well for continued growth in the Indian real estate market.

DLF Ltd has reported impressive sales figures for its super-luxury project 'The Dahlias' in Gurugram, contributing significantly to the company's robust performance in the first half of the fiscal year 2024-25. However, the company's second-quarter results show a mixed picture with a decline in profit and revenue.

The Dahlias: A Blockbuster Launch

DLF's 'The Dahlias' project, launched in October at DLF Phase 5, Gurugram, has seen remarkable success:

The project's popularity among high-net-worth individuals is evident, with one notable transaction involving a businessman purchasing four apartments totaling 35,000 sq ft for Rs 380.00 crore.

H1 FY2024-25 Performance

DLF's overall sales bookings have shown substantial growth:

The company is on track to achieve its annual pre-sales guidance of Rs 20,000-22,000 crore, bolstered by existing inventories and upcoming launches.

Q2 FY2024-25 Financial Results

Despite strong sales, DLF's Q2 financial results show some challenges:

Outlook

Despite the dip in quarterly profits, DLF remains optimistic about its future performance. The success of 'The Dahlias' and the strong overall sales bookings in the first half of the fiscal year provide a solid foundation for the company's growth trajectory.

The real estate market, particularly in the luxury segment, appears to be robust, as evidenced by the high-value transactions in 'The Dahlias' project. This trend could potentially offset any short-term fluctuations in the company's financial performance.

As DLF continues to leverage its existing inventory and plan new launches, investors and market watchers will be keen to see if the company can maintain its sales momentum and improve its profitability in the coming quarters.