In This Article:
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Quarterly New Sales: INR 690 crores.
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First Half Total Sales (Presales): INR 7,000 crores.
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Free Cash Flow (DevCo): INR 1,200 crores.
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Free Cash Flow (RentCo before Dividend and CapEx): INR 900 crores.
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Total Free Cash Flow per Quarter: INR 2,000 crores plus.
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Profit After Tax (PAT): INR 781 crores from operations.
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Deferred Tax Liability Reversal Impact on PAT: Additional INR 600 crores.
Release Date: October 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DLF Ltd (BOM:532868) reported strong free cash flow generation, with INR 2,000 crores plus per quarter.
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The company has a robust sales pipeline for the second half, including significant projects like The Dahlias.
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DLF Ltd (BOM:532868) is experiencing strong demand for its super luxury projects, particularly The Dahlias, which has received overwhelming interest.
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The rental business is expanding, with accelerated CapEx programs and new developments in Gurgaon, Chennai, and Goa.
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DLF Ltd (BOM:532868) maintains a strong financial position, with net debt already at zero and plans to achieve gross debt zero in the near future.
Negative Points
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The quarterly new sales slipped to INR 690 crores due to delays in approval cycles, impacting short-term sales figures.
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There is a concentration risk with a heavy reliance on the NCR market, which could pose challenges if market conditions change.
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The reported margins are affected by older sales and current cost structures, leading to a mismatch that may take 18 to 24 months to align.
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Approval processes for new projects, especially outside Gurgaon, are unpredictable and can cause delays in launches.
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The company's growth strategy is heavily focused on NCR, with limited expansion plans in other regions like MMR and Chandigarh.
Q & A Highlights
Q: Can you update us on the approval stage for various launches, including Dahlias and other projects like Privana? A: The Dahlias' formal approvals came in the first week of October. We are confident of launching Mumbai in Q4, with Privana and Goa also on track. We remain strong in meeting our full-year sales guidance.
Q: What are your thoughts on peers raising equity and buying land aggressively in the NCR region? Are you accelerating your launches for FY26? A: Competition is healthy, but we focus on our strengths. We have a robust three-year plan for Gurgaon and are not pressured by peers. Our existing customer base is strong, and we continue to expand our NRI business.