For DLF, luxury is the flavour of the season
₹6,404 crore in the June quarter (Q1FY25), up more than 200% year-on-year. This whopping increase was driven by the launch of the second phase of the luxury project Privana West in New Gurugram. The project was fully sold out, with bookings of ₹5,600 crore.
Its ultra-luxury project, The Camellias, in DLF 5 area, also saw decent traction. The company’s management is confident of demand sustaining, and has guided for 15% year-on-year pre-sales growth to ₹17,000 crore in FY25. With unsold inventory levels falling, timely new launches are crucial to meet this mammoth target.
DLF’s launch pipeline for FY25 stands at around 12.8 million sq. ft (msf) with a gross development value (GDV) of ₹42,000 crore, out of which ₹40,000 crore is earmarked for the uber-luxury segment. DLF has raised its FY25 launch pipeline by 17%.
This upgrade is driven by the DLF 5 project, whose size is now estimated at ₹25,000 crore. Beyond FY25, the target has been increased to ₹62,500 crore to be launched over two-three years. Also, the DLF management has clarified that it does not see a big impact on its residential pre-sales due to the taxation changes (removal of indexation benefit on property transaction) announced in the Union budget.
Higher exposure to luxury and ultra-luxury categories should give DLF’s medium-term margins a boost, since these segments are more margin-accretive than others. The healthy sales momentum and strong growth in collections helped DLF further improve its net cash position to ₹2,896 crore. Remember, DLF turned net cash positive in Q2FY24.
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