DLF climbs 4% as realty firm sells 292 luxury homes for Rs 1,800 crore

Shares of DLF climbed nearly 4 per cent in Thursday’s trade amid reports the real estate firm sold 292 luxury homes in Gurugram for over Rs 1,800 crore, within a few days of the launch of the project. 

On September 26, DLF had launched its project ‘The Grove’ located at DLF phase-5 in Gurugram, Haryana. A PTI report quoting sources suggested that the project has been completely sold out in eight days of the launch, adding that total sales revenue from this project is over Rs 1,800 crore. 

Following the development, the scrip jumped 3.79 per cent to hit a high of Rs 372.25 on BSE. With this, the scrip has surged 26.30 per cent over its 52-week low of Rs 294.75 hit on June 20.  

Also Read: As Shamshera, Laal Singh Chaddha & others disappoint, multiplexes stare at losses in Q2
 The company registered Rs 1,453 crore of net sales booking, Rs 2,040 crore including ONE Midtown JV, in the June quarter. 

In its Q2 earnings preview note on Thursday, Antique Stock Broking said: “DLF has been a key beneficiary of the revival in NCR housing market, owing to its presence across the value chain and strong brand recall.
We expect Rs 1,500 crore in sales from existing projects and additional Rs 1,000 crore-plus in sales from newly launched independent floors in New Gurugram, Panchkula and DLF 5 on the back of strong traction in these premium products in the NCR market.”

DLF is likely to generate healthy cash flow through new launches, liquidation of inventory in the absence of any large, debt-funded capex and pursuit of short-cycle projects while continuing to benefit from its strong market position and strengthened balance sheet, Crisil said in September while revising its outlook on the real estate firm to ‘Positive’ from ‘Stable’. 

Financial risk profile of DLF has also strengthened marked by significant reduction in debt levels and strong financial flexibility, the rating agency had said.  

New product offerings are being planned by DLF in certain key markets such as Chandigarh Tri-city, Chennai and Goa in addition to its core markets of Delhi and Gurugram, which will support the business risk profile of the company, Crisil added.