Shares of DLF Ltd rose as much as 6% on Monday after the company reported a 40% jump in its net profit for the quarter ended March 31, 2023.
The Gurugram-based real estate company's stock hit a 52-week high of ₹461.65 apiece on the BSE.
Net profit of the realty company surged 40% year-on-year to ₹570 crore in Q4, aided by record sales in its residential business.
Revenue from operations, however, dropped 6% to ₹1,456 crore for the fourth quarter as against ₹1,547 crore in the year-ago period.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 8% to ₹398 crore for the January-March quarter as against ₹367.5 crore in the corresponding quarter last year.
The board of directors recommended a dividend of ₹4 per share on equity shares of ₹2 each for the fiscal ended March 31, 2023.
"Our residential business delivered a record performance by clocking new sales bookings of Rs 8,458 crore, reflecting a Y-o-Y growth of 210%. Cumulative new sales for the fiscal stood at Rs 15,058 crore, record annual sales bookings," the real estate firm says in its earnings release.
Its luxury offering – The Arbour at Sector 63, Gurugram, created a new benchmark in residential sales by setting a record of being entirely sold out during the pre-formal launch phase garnering new sales bookings of over ₹8,000 crore.
"The residential upcycle along with rising demand for luxury segment enthuses us to remain committed towards scaling up our new offerings. We continue to follow a calibrated approach to bring new products across multiple markets while simultaneously ensuring timely execution of our launched products," says DLF.
According to the real estate company, the strong business performance led to a healthy surplus cash generation, strengthening its balance sheet. DLF's net debt now stands reduced to ₹721 crore.
DLF says its office portfolio remained steady. Consolidated revenue of DLF Cyber City Developers Ltd grew to ₹5,419 crore in FY23, reflecting y-o-y growth of 19%; consolidated profit for the year stood at Rs 1,429 crore, a y-o-y growth of 43%.
The recovery across the office segment remains gradual on account of continued global macro headwinds, the realty major says. "While such headwinds continue to impact decision making in the short term, we believe that India would continue to be the preferred destination for global captives and large occupiers," it adds.
"The occupancy of our existing portfolio remained steady; however, we are witnessing healthy demand traction for our newer developments indicating a clear shift by large occupiers towards quality workplaces offering enhanced safety, engaging experience, and an integrated sustainable ecosystem. With this backdrop, we continue to invest in our new developments across DLF Downtown, Gurugram and Chennai and are implementing asset enhancement strategies across our existing portfolio as well," says DLF.