DLF's net profit up 35% in Q3, total revenue falls to Rs 1,560 crore

Exceptional expenses last year boost profit in Q3

Real estate major DLF on Wednesday reported a net profit of Rs 519.21 crore for the third quarter (Q3) of FY23, reflecting an increase of 36.8 per cent compared to the profit of Rs 379.48 crore in the year-ago quarter. 

The rise can be attributed to the exceptional item (expense) of Rs 224.43 crore reported in the year-ago quarter. Profit before exceptional items, tax, share of profit in associates and joint ventures stood at Rs 408 crore in Q3FY23, down compared to Rs 475.66 crore in the year-ago period.

DLF's total income during the quarter fell to Rs 1,560 crore as against Rs 1,687 crore in the corresponding period, last year. Revenue from operations at Rs 1,494.80 crore, are about 3.5 per cent lower than Rs 1,549.70 crore in the year-ago quarter.

On the profitability front, earnings before interest, taxes, depreciation, and amortisation (Ebitda) at Rs 542 crore in Q3 was down 17.7 per cent year-on-year (YoY) compared to Rs 658.34 crore for the October-December 2021 quarter.

The company said that strong business momentum was seen across all segments. DLF’s residential business clocked one of the highest quarterly new sales bookings of Rs 2,507 crore, reflecting a YoY growth of 24 per cent. In the previous quarter, the firm's new sales bookings stood at Rs 2,052 crore. Cumulative new sales for the first nine months of FY23 stood at Rs 6,599 crore, reflecting a YoY growth of 45 per cent.

“Our luxury offering – The Grove at DLF5, Gurugram, stands completely sold-out reaffirming demand for quality offerings at established locations. Sales bookings during the quarter for this product stood at Rs 1,570 crore,” the company said in a statement.

The second phase of the recently launched product-The Valley Gardens in Panchkula also clocked in sales bookings of Rs 540 crore during Q3, FY23.

“We remain enthusiastic about the housing industry's intrinsic growth potential which continues to be supported by a resilient economy. Our focus remains on creating customer-centric products that provide a distinctive living experience with best-in-class amenities across our established ecosystems,” the company said.

DLF’s net debt stood at Rs 2,091 crore at the end of Q3 as against Rs 2,142 crore in Q2, FY23.

DLF Cyber City Developers, the rental arm of DLF, reported a net profit of Rs 358 crore, reflecting a YoY growth of 27 per cent. Rental income grew 15 per cent YoY to Rs 1,003 crore, while consolidated revenue of the rental arm stood at Rs 1,363 crore for Q3, FY23 as compared to Rs 1,176 crore last year.

According to the company, its office portfolio continues its gradual path to recovery. “Occupiers’ attendance across the portfolio continues to inch upwards with gradual recovery across the office segment. While global headwinds continue to persist leading to a challenging environment, we expect demand for quality office assets at established locations should continue to garner interest from large occupiers,” DLF said.

It also said that the retail business continues to exhibit healthy growth and consumption trends continue to reflect sustained momentum with sales delivering consistent growth leading to a healthy retail business outlook.

The realty major’s new development across DLF Downtown, Gurugram and Chennai remains on track. Planning for its upcoming retail destination, Mall of India at Gurugram is in advanced stages, the company said in the statement.