Realty major DLF aims for a 30 percent increase in its sales bookings to Rs 4,000 crore this fiscal year, as the company expects a rise in housing demand despite the COVID-19 pandemic.
The company will launch several projects, comprising 8 million square feet of saleable area, to take advantage of this growing demand for residential properties, especially those built by trusted developers.
In a conference call with analysts, the new CEO of DLF Ashok Kumar Tyagi gave sales bookings guidance of Rs 1,000 crore per quarter during the current financial year.
During the 2020-21 financial year, DLF sold residential properties worth Rs 3,084 crore, up 24 percent from the previous year, despite moderate sales in April and June 2020 due to the nationwide lockdown.
DLF Group Chief Financial Officer Vivek Anand stated that the company is committed to delivering on sales bookings guidance.
“Internally, we are preparing for a higher number,” Anand said, adding that sales would be slow in the current quarter due to the second wave.
Regarding the offer, DLF's chief financial officer indicated that the company aims to launch an eight million square feet area in the current fiscal.
It is set to launch the project in the national capital to be developed in a joint venture with Singapore's sovereign wealth fund GIC.
After receiving a good customer response for independent floors in Gurugram, DLF said it will launch more such products in the market for sale.
The demand includes all sectors of housing: middle income and luxury, said Aakash, Senior Executive Director (Business Development).
He highlighted that the monthly rentals of luxury apartments in DLF are also high, which generates a good return for investors.
In its analytical presentation, DLF said: "Residential demand showed a strong recovery during the latter part of FY21. The first quarter of FY22 could be affected due to closing restrictions."
The company noted that growth factors such as affordability, consumer sentiment, and the desire to own home remain essentially in place and these factors will continue to help rebound demand in the housing sector.
DLF said the real estate industry has seen a positive structural shift in housing demand in 2020-2021.
"Consolidation and increased market share have been observed for larger and more credible developers and may continue to gain momentum going forward," the company noted.
DLF noted that the industry is experiencing a temporary disintegration due to the second wave of the pandemic.
As a result, construction work, approvals, and customer engagement were affected in the short term.
In terms of financial performance, DLF announced a consolidated net profit of Rs 480.94 crore for the quarter ended March.
The company recorded a net loss of Rs 1,857.76 crore in the year-ago period.
Total income rose to Rs 1,906.59 crore in the fourth quarter of the last fiscal year, from Rs.1,873.80 crore in the corresponding period of the previous year.
For the entire financial year 2020-21, DLF posted a net profit of Rs.1,093.61 crore against a net loss of Rs.583.19 crore.
Total income fell to Rs 5,944.89 crore in the last fiscal from Rs 6,888.14 in the financial year 2019-20.
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