DLF shares rise on strong September quarter earnings

Shares of DLF, the country's leading real estate developer, rose as much as 3 per cent to hit an intraday high of Rs 570.25 a day after it reported strong set of September quarter earnings.

DLF's net profit in September quarter rose 33 per cent on the back of higher home sales and new property launches.

The real estate demand has been strong ahead of the festive season which started at the end of the September-quarter, on growing consumer confidence despite high inflation and borrowing costs.

DLF's consolidated net profit came in at Rs 623 crore for the quarter ended September 30, compared with Rs 477 crore in the year ago period

The company's share of profit in associates and joint ventures such as DLF Cyber City Developers, DLF Midtown and DLF SBPL Developers rose 24.5 per cent, and accounted for 43 per cent of the total profit.

Revenue from operations rose 3.5 per cent, while expenses rose marginally on higher costs of plots and constructed properties.

DLF’S new sales bookings for the quarter stood at Rs 2,228 crore and its new products and existing inventory continue to evince strong customer interest. Its super luxury offering – The Camellias in DLF 5, Gurugram, saw healthy demand during the quarter and continues to set new benchmarks vindicating strong demand for high quality residential products backed by a strong brand.

“We continue to see sustained demand momentum across all segments and hence keep a positive outlook on the housing cycle. Our new product launches that have been planned for the second half of the fiscal remain on track and we remain committed to bringing calibrated supply across our key markets and leverage this growth cycle,” DLF said in a press release.

"Expect a surge in both new launches and housing sales this festive season, despite domestic and global headwinds in the first nine months of 2023," said Anuj Puri, chairman of property consulting firm Anarock Group.

"Our new product launches planned for the second half of the fiscal remain on track," DLF said in a statement, adding that it continued to see a sustained demand momentum.

Founded in 1946, DLF develops and sells residential properties and leases commercial and retail properties in 24 cities.

It is the second among top listed property developers to post results, with rivals Godrej Properties, Sobha expected to report next month.

Oberoi Realty on Friday reported a 43.4 per cent jump in September-quarter net profit, while its revenue surged 76.8 per cent on the back of strong demand.

As of 11:37 am, DLF shares traded 1.71 per cent higher at Rs 563.30, outperforming the Sensex which was down 0.22 per cent.