Realty major DLF Ltd's sales bookings rose 62 per cent year-on-year during the April-September period to Rs 4,092 crore on better demand for its housing properties. Its sales bookings stood at Rs 2,526 crore in the first half of the previous financial year, according to an investors presentation by the firm.
DLF Ltd has given guidance of sales bookings at Rs 8,000 crore for the current 2022-23 financial year, a 10 per cent increase from the previous fiscal. Its sales bookings rose to Rs 7,273 crore in 2021-22 fiscal from Rs 3,084 crore in the previous year.
When contacted, DLF Group Executive Director and Chief Business Officer Aakash Ohri attributed the growth in sales bookings to strong end-user demand for its residential properties.
"We are maintaining the sales bookings guidance for this fiscal year," he said, adding that the company would prefer being cautious in the rising interest rate regime.
Ohri said the company has worked hard in the last two years to attract end-user customers. Timely execution of projects and providing quality services in housing societies post-completion of projects are very crucial elements for genuine customers. the company plans to launch two new housing projects in Gurugram and Panchkula during the second half of this fiscal to tap rising housing demand.
In the last 18 months, all major listed real estate developers have been reporting decent to high growth in their sales bookings numbers. Bengaluru-based Prestige Estates, Macrotech Developers (Lodha group), Godrej Properties, and DLF Ltd are the top performers in annual sales bookings. Other listed entities including Oberoi Realty, Sobha, Mahindra Lifespace, Indiabulls Real Estate, Brigade Enterprises, Puravankara Ltd, and Shriram Properties are also giving them tough competition.
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Their figures suggest that sales remained strong despite an increase in the interest rates on home loans, from around 6.5 per cent to about 8.5 per cent in the last five months.
Since May, the RBI has increased the repo rate by 190 basis points to tame inflation. Banks have passed on the repo rate hike by raising mortgage rates. However, DLF said: "We remain optimistic on the inherent growth potential in the housing sector on the backdrop of rising aspirations of the communities for well-designed, high-quality products across established ecosystems."
The company said it has got an encouraging response to new products like low-rise independent floors across multiple markets. It aims to continue this growth trajectory by continuously offering differentiated products across multiple segments.
DLF further said it would continue to focus on stronger cash generation through sustained momentum in sales of completed inventory along with new offerings. It has achieved strong sales in its residential projects at Gurugram, Delhi, and Panchkula.
Last week, DLF reported a 26 per cent increase in its consolidated net profit at Rs 477.20 crore for the quarter that ended September Its profit stood at Rs 378.12 crore in the year-ago period. Total income fell to Rs 1,360.50 crore in the second quarter of this fiscal from Rs 1,556.53 crore in the corresponding period of the previous year.
In a statement after the results, DLF said it experienced further consolidation across the industry in the backdrop of changing consumer preference towards quality offerings from large and credible players.
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"The interest rate hike was on expected lines. We continue to closely monitor these developments, however, have not experienced any material impact on housing demand so far," it had said.
DLF is India's largest real estate company in terms of market capitalisation. It has developed more than 153 real estate projects covering 330 million square feet.
The company has 215 million square feet of development potential across the residential and commercial segments. It has an annuity portfolio of over 40 million square feet. The company is primarily engaged in the business development and sale of residential properties (development business), and the development and leasing of commercial and retail properties (annuity business).
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