DLF Limited has announced robust financial results for the second quarter ending September 30, 2024, posting significant year-on-year growth in both revenue and profit. The company reported a 122% increase in net profit, rising to ₹1,381.22 crore from ₹621.89 crore in Q2 FY24. The surge in profits was driven by strong sales growth and improved operational efficiencies.
Key Financial Highlights (Q2 FY25 vs Q2 FY24):
- Revenue from operations: ₹1,975.02 crore, up 46.5% from ₹1,347.68 crore
- Total income: ₹2,180.83 crore, up 47.7% from ₹1,476.42 crore
- Profit before tax (PBT): ₹576.61 crore, up 24.4% from ₹463.97 crore
- Net profit: ₹1,381.22 crore, a 122% rise from ₹621.89 crore
- Total expenses: ₹1,604.22 crore, up 58.4% from ₹1,012.45 crore
- Earnings per share (EPS): ₹5.58, up from ₹2.52, reflecting a 121.4% increase
DLF’s strong financial performance is attributed to its focus on scaling up operations, which has resulted in substantial growth in both revenue and net profit. The company is set to maintain its momentum in the real estate sector, particularly with high-margin projects in the pipeline.
Brokerage Outlook:
- Morgan Stanley has maintained an Equal-weight rating on DLF, with a target price of ₹910, indicating a potential upside of 17% from the current market price of ₹777.70.
Other Key Insights:
- Q2 Pre-Sales Miss: DLF’s pre-sales for Q2 FY25 stood at ₹6.9 billion, missing the expected ₹15 billion due to approval delays. However, attention is now focused on the launch of the LUX5 project this quarter.
- FY25 Sales Target: DLF remains confident in achieving its ₹170 billion sales target for FY25, backed by upcoming launches, including the LUX5 project and another in Mumbai in Q4.
- Long-Term Sales Projections: Morgan Stanley maintains its sales estimates of ₹200 billion for FY25 and ₹240 billion for FY26.
- High-Margin Projects: The LUX5 project is expected to contribute with a 70% gross margin, keeping overall development margins above 40%.
- Strong Rental Growth: Joint venture rental EBITDA grew 14% YoY and is expected to sustain double-digit annual growth with upcoming project completions.
DLF’s strong Q2 results and promising project pipeline are key factors in sustaining investor confidence, as the company continues to target substantial growth in both development and rental segments.
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