Gurugram-based real estate giant DLF Ltd is gearing up to introduce two opulent residential projects with a combined investment of Rs 15,000 crore in Gurugram during the latter half of this fiscal year. The strategic move is aimed at capitalizing on the robust demand for high-end homes, according to statements by Managing Director Ashok Kumar Tyagi.
Bolstered by the staggering success of their recent project ‘The Arbour’ in Gurugram, which raked in sales worth Rs 8,000 crore within a mere three days in February, Tyagi outlined the company’s ambitions to achieve sales bookings exceeding Rs 13,000 crore in the current fiscal year. This goal comes on the heels of the company’s substantial sales bookings of Rs 15,058 crore during the 2022-23 financial year, marking a significant twofold increase from the previous year’s Rs 7,273 crore.
In an exclusive interview with PTI, Tyagi delved into the housing market landscape, noting the robust demand for properties across the ultra-luxury, luxury, and mid-income segments. However, he also acknowledged stress within the affordable housing sector due to escalating interest rates on home loans and rising property prices.
Regarding DLF’s strategy to tap into this heightened demand for premium and luxury segments, Tyagi revealed the company’s substantial launch pipeline of Rs 20,000 crore for the current fiscal year. The upcoming launches will predominantly center around two projects in Gurugram, with one situated along the Southern Peripheral Road (SPR) and the other along Golf Course Road.
While the projected sales bookings for these Gurugram projects hover around Rs 15,000 crore, Tyagi withheld further specifics. Notably, DLF already possesses the necessary land parcels for both undertakings in Gurugram.
Tyagi also disclosed plans for the introduction of a residential tower within the Moti Nagar project in Delhi, one within Chandigarh’s Tricity area, and another in Mumbai this fiscal year. He noted the potential for launches in Chennai and Goa in the following fiscal year.
The MD highlighted the company’s restrained project launches during the initial quarter of this fiscal year, citing the swift sellout of ‘The Arbour’ project, which had been anticipated to continue selling until September. This accelerated success led to flat sales bookings of Rs 2,040 crore in the first quarter.
When probed about potential land acquisitions, Tyagi emphasized the company’s focus on markets including Delhi-NCR, Tricity, Chennai, Goa, and Mumbai. While exploring land deals in Gurugram, he cautioned that these ventures remain in preliminary stages.
Regarding DLF’s foray into the Noida market, Tyagi explained that land parcels with clear titles and devoid of legal disputes are proving elusive. In recent news, DLF disclosed a Rs 400 crore equity investment for a Mumbai real estate project in partnership with the Trident group, encompassing an estimated saleable area of 3.5 million square feet. The initial phase, spanning 900,000 square feet of residential space, is set to launch by the fiscal year’s end.
Tyagi also provided insights into billionaire K P Singh’s divestment of all equity shares in DLF, noting Singh’s intentions to establish a personal charitable foundation. The proceeds from Singh’s Rs 731 crore stake sale will serve as the foundation’s corpus.
DLF recently reported a 12% surge in consolidated net profit, totaling Rs 527 crore in the initial quarter of the fiscal year. This compared favorably to the Rs 469.57 crore recorded in the corresponding period of the previous year.
Notably, the company’s total income experienced a marginal uptick, reaching Rs 1,521.71 crore in the April-June window of the 2023-24 fiscal year, slightly surpassing the Rs 1,516.28 crore posted during the same period the prior year. DLF’s net debt as of June 30, 2023, stood at Rs 57 crore, a notable reduction from the Rs 721 crore at the close of the 2022-23 fiscal. During the review period, gross debt also diminished from Rs 3,840 crore to Rs 3,068 crore.
DLF reigns as India’s most valuable realty firm in terms of market capitalization, boasting a portfolio of over 158 real estate projects spanning an impressive 340 million square feet. The group’s development potential encompasses 215 million square feet across both residential and commercial sectors, further bolstered by an annuity portfolio exceeding 42 million square feet.