Mumbai, Oct. 23 -- DLF is pursuing growth through residential pre-sales, improved profitability and expansion of its commercial rental business, Managing Director Ashok Tyagi said during a conference call with analysts. The company expects reported revenue to increase substantially as housing projects launched after the Covid-19 pandemic are completed and income is recognised in its financial statements.

Tyagi identified advance sales of selected residential projects, stronger cash generation and margins, and continued growth in rental income as the company's three principal growth drivers. DLF recorded property sales worth Rs. 44.57 bn during the first six months of the current financial year and has set a sales booking target of approximately Rs. 200 bn for FY27.

The developer reported a 10 per cent rise in consolidated net profit to Rs. 13.01 bn for the July-September quarter, compared with Rs. 11.8 bn in the corresponding period last year. Consolidated income increased marginally to Rs. 22.97 bn from Rs. 22.62 bn, with the improvement mainly attributed to higher other income.

Sales bookings, or pre-sales, declined to Rs. 38 bn in the second quarter from Rs. 43.32 bn a year earlier because less new residential inventory entered the market. DLF said its luxury senior living project was fully sold, with all 172 units in the Gurugram development generating Rs. 19.85 bn in sales, while its ultra-luxury project, The Dahlias, continued to attract buyer interest.

Chief Financial Officer Badal Bagri attributed the quarterly performance to the strength of the property portfolio, project execution, brand reputation and disciplined capital allocation. Operating cash flow stood at Rs. 18.58 bn, while net cash was Rs. 150.84 bn despite a dividend outflow of Rs. 19.8 bn. For the first half of FY27, net profit rose to Rs. 20.95 bn, although total income fell to Rs. 39.03 bn from Rs. 52.43 bn. DLF has completed more than 185 developments covering over 352 mn square feet and has about 50 mn square feet of income-generating commercial assets.

Published by HT Digital Content Services with permission from Construction World.