DLF Aims for Surplus Cash Generation with Robust Collections and Demand

Leading real estate firm DLF is optimistic about achieving “surplus cash generation” by the end of the fiscal year, propelled by improved collections and strong demand in the market. The company maintains its pre-sales guidance in the range of Rs 12,000–13,000 crore.

In the first quarter of FY24 (April to June), DLF significantly reduced its net debt level to a remarkable Rs 57 crore, marking one of its lowest figures ever. Collections during this period showed an impressive 47 percent year-on-year growth, reaching Rs 1,580 crore.

After accounting for construction costs and overheads, the company realized a surplus of Rs 670 crore, leading to a cash balance of Rs 2,960 crore, even as it held a gross debt of Rs 3,010 crore.

Anand Mathur, CFO of DLF, highlighted the company’s continuous efforts to strengthen its balance sheet and emphasized the impact of strong collections in reducing net debt. He expressed confidence in achieving their commitment of being net zero and is hopeful about ending the year with a surplus cash position. These positive outcomes were discussed during an investor call.

During Q1FY24, DLF recorded bookings of Rs 2,040 crore, remaining flat compared to the previous year. However, due to the absence of new launches in the current quarter, bookings declined by 76 percent on a sequential basis. The company’s sales were predominantly driven by ongoing and completed inventory.

DLF now holds pending inventory worth Rs 5,600 crore from ongoing and completed projects and has ambitious plans to launch projects spanning 10 million square feet, with a potential revenue of Rs 19,000 crore.

Analyst firm Motilal Oswal noted that there is potential for upside risk depending on the response to the upcoming launch of Crest II, a residential complex in Gurugram.

DLF is preparing to launch a significant portion of its 10 million square feet projects in H2FY24.

Among the launches, approximately 3.5 million square feet falls under the super-luxury high-rise category in DLF 5, Gurugram. Additionally, 1.2 million square feet belongs to the high-rise luxury category, spread across projects in Chennai, mid- to high-rise category in Gurugram, and a low-rise project in Chandigarh.

By the end of Q2FY24 (September-end), DLF plans to unveil Tower D at its One Midtown property in Delhi, for which 80 percent of the inventory is already booked, signaling strong demand and traction.

DLF has joined hands with Trident for a for-sale component of 0.9 million square feet in a Slum Rehabilitation Authority (SRA) project in Andheri, Mumbai. This marks the company’s entry into the Mumbai real estate market. The larger SRA project has a development potential of 3-3.5 million square feet for sale.

DLF will invest Rs 400 crore in equity for a 51 percent stake in a Special Purpose Vehicle (SPV) and may consider taking up equity in the main company at a later stage. The successful completion of this pilot project will pave the way for long-term plans, including potential commercial projects, as stated by Ashok Tyagi, CEO of DLF.

Under the partnership with Trident, DLF will oversee construction, sales, and financial closure of the Mumbai project, marking a significant milestone in the company’s expansion into one of India’s most dynamic real estate markets.

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