DLF MD upbeat about demand, price prospects, says company in a ‘virtuous cycle’

Real estate major DLF is upbeat about its demand prospects in the next few quarters with several luxury projects lined up across the country.

In an interaction with CNBC-TV18, Ashok Kumar Tyagi, managing director of the firm, said demand is holding up and is strengthening quarter on quarter.

“We launched the second phase of Privana and it was sold out in 3-4 days. So, demand is holding up, pricing trends are holding up and our execution machinery is in full shape,” Tyagi said, adding that the commercial side- office and retail leasing- are also performing well every quarter. “We are in the midst of a virtuous cycle,” he added

Also read: DLF to launch super-luxury project The Camellias 2 in Q3 FY25, each apartment to cost over Rs 50 crore

Tyagi highlighted that the company’s sales guidance for FY25 is at Rs 17,000 crore, which is more than the Rs 10,000 crore it had for the previous year. However, the guidance has conservatively estimated a sales value of Rs 3,500 in FY25 from its upcoming premium property DLF Camellias 2 or Lux 5 project in Gurgaon, which is likely to cost over Rs 50 crore a unit. The new project, which will have 420 super luxury apartments and will be launched in phases, has a potential launch value of Rs 20,000 crore, Tyagi said.

“We are planning another super luxury product on the Gold course road as Camellias has been sold out completely. We have ascribed a potential launch value of Rs 20,000 crore to it. We expect to clock Rs 17,000 crore in sales in FY25 with Rs 3,500 crore coming from the ‘Lux 5’ project in Gurugram,” he said, adding that the firm expects to beat FY25 sales guidance.

Also read: DLF’s luxury residential project ‘DLF Privana West’ achieves Rs 5590 crore sellout in 3 days

Additionally, Tyagi also highlighted that the real estate firm’s projects in Goa and Mumbai are likely to come up in the second and third quarters.

“In Q1, we had Privana phase 2, which fetched around Rs 5,700 crore. In Q2, DLF plans to launch its super luxury villa project in Goa. After that in late Q2 or early Q3, we will launch Lux 5. Mumbai launch will be in late third quarter, which will be followed by the next phase of Privana in the fourth quarter.

Also read: DLF readies to enter luxury housing markets of Mumbai, Goa

The real estate major had recently announced the successful sell-out of its latest luxury residential project, ‘DLF Privana West,’ which was valued at approximately Rs 5,590 crores, in just three days. The property, which covers approximately 12.572 acres, is situated between sectors 76 and 77 in Gurgaon and is an integral component of the larger ‘DLF Privana’ ecosystem sprawling across approximately 116.296 acres.

On May 13, DLF reported a 61.5 percent jump in its net profit at Rs 921 crore for the quarter ended 31 March, against Rs 570 crore posted in the year-ago period, the firm said in a regulatory filing.

DLF Q4 results: Net profit up 61.5% to Rs 921 crore, revenue up 47%

The real estate giant said that the company’s net profit for the financial year 2023-24 stood at Rs 2,733 crore, reflecting YOY growth of 33 percent.

DLF’s revenue also surged nearly 47 percent YoY to Rs 2,135 crore in the January-March quarter compared to Rs 1,456 crore the firm reported in Q4FY23.

On May 27, the stock price of the company was trading 0.35 percent higher at Rs 843.85 on BSE at 2:35 pm.