DLF Q4 profit, revenue slip; starts development plans for new retail projects

Real estate developer DLF Ltd on Tuesday reported a 16% decline in its consolidated net profit for the fourth quarter to Rs 405.33 crore from about Rs 481 crore a year earlier. 

Total income for the quarter ended March 31 fell to Rs 1,652.13 crore from Rs 1,906.39 crore a year earlier. 

For the financial year 2021-22, DLF reported a consolidated net profit of Rs 1,500.86 crore, which was significantly better than the Rs 1,093 crore the company had reported for 2020-21. 

Other key highlights

1) Total consolidated income for 2021-22 was Rs 6,137.5 crore, up from Rs 5,945 crore in the financial year 2020-21.

2) Earnings per share for the fourth quarter came down to Rs 1.64 from Rs 1.94 a year earlier.

3) On an annual basis, EPS was up from Rs 4.42 in 2020-21 to Rs 6.06 in 2021-22.

4) On a consolidated basis, DLF’s total assets declined from Rs 54,809 crore at the end of March 2021 to Rs 52,503 crore at the end of March 2022.

Segment performance and outlook

DLF said housing demand continues to exhibit a structural upswing across segments and geographies. Its residential business showed a record performance in the fiscal year with new sales bookings growing 136% to Rs 7,273 crore.

The developer said it witnessed strong growth across all its segments with luxury segment leading this trend. Its super-luxury offering, The Camellias, delivered sales bookings of Rs 2,550 crore during the fiscal. Its new launches across New Delhi, Gurugram and Chennai also continue to receive encouraging response, it said.

DLF said its total new products sales bookings stood at Rs 4,683 crore during the fiscal year. Strong collections along with sales ramp-up led to one of the highest levels of surplus cash generation of Rs 2,205 crore during the year. It also reduced its net debt by 46% at the end of fiscal to Rs 2,680 crore.

The company said sustained momentum and strong tailwinds are expected to support the structural upswing in housing demand over the medium term.

The retail business exhibited strong rebound despite temporary dislocations due to the pandemic in the fourth quarter. Footfalls and consumption trends continue to support the healthy growth in this segment. Consequently, DLF has initiated development plans to build out new retail destinations across certain geographies.

However, it warned that inflationary pressures and reversal of the interest rate cycle may pose a marginal risk to the momentum in the industry.