Shares of realty firm DLF surged almost 6 percent on Monday after it announced strong earnings for the quarter ended March 2023.
The company reported a sharp 40 percent surge in its net profit to ₹569.60 crore in the March quarter as compared to ₹405.5 crore in the year-ago period driven by robust new sales bookings. However, its revenue for the quarter under review fell 6 percent to ₹1,456 crore versus ₹1,547.26 crore in the corresponding quarter last year.
The stock rose as much as 5.9 percent to its intra-day high of ₹461.
The company's residential business also delivered a record performance, led by new sales bookings of ₹8,458 crore, up 210 percent YoY. Further, its cumulative new sales for the fiscal jumped over 2-fold to a record ₹15,058 crore as against ₹7,273 crore in the previous year, added DLF.
Sentiment also remained positive after the realty player announced that it will unveil projects worth ₹19,710 crore for sale by March next year. DLF further aims to achieve sale bookings of about ₹12,000 crore in FY24 led by strong housing demand.
“A normalised sale for 2022-23 should really have been in the range of ₹10,000-11,000 crore. We will still keep our heads guided. And we will say that in FY24 we should still be looking at sales guidance of ₹11,000-12,000 crore,” DLF CEO Ashok Tyagi said in the conference call.
In addition to the record sale bookings in FY23, the real estate major has also chalked out an aggressive launch pipeline for 2023-24 at 11.2 million square feet area with an estimated sales revenue potential of ₹19,710 crore, said the firm.
Overall in FY23, DLF’s net profit jumped 36 percent to ₹2,033.95 crore from ₹1,500.32 crore in FY22. Meanwhile, its total income fell to ₹6,012.14 crore in FY23 versus ₹6,137.85 crore in the previous year.
However, despite the robust numbers, brokerage house Motilal Oswal remained neutral on the stock post its Q4 earnings but raised its target price to ₹440 from ₹415 earlier. However, even the raised target price indicates just a 1 percent upside in the stock.
Meanwhile, the brokerage has maintained its revenue estimates for FY24 and FY25, but lowered EBITDA by 20 percent and 29 percent, respectively as it factored in higher overheads, on the back of an increased project pipeline.
MOSL also believes that the company can match its FY23 sales run-rate, driven by a strong launch pipeline of 11msf across the luxury and value segment. Thus, it has increased its FY24 and FY25 pre-sales estimates by 70 percent and 32 percent, respectively.
