Is DLF’s dull show in the September quarter a one-off?
Subscribe to enjoy similar stories. DLF Ltd’s pre-sales or booking momentum dwindled in the September quarter (Q2FY25) thanks to muted sales of existing projects in a seasonally lean quarter and no new project launches due to delayed approvals. The realty company’s pre-sales fell 69% year-on-year and 89% sequentially to a 17-quarter low of ₹692 crore.
The management has retained pre-sales guidance for the full year despite DLF’s pre-sales at ₹7,094 crorein the first half of FY25 (H1FY25) being less than the target of ₹17,000 crore for the second half of the year, which is a 15% increase year-on-year. The management’s confidence is driven by a slew of new launches reviving its bookings, with the crucial one being the super-luxury The Dahlias project in DLF Phase 5, Gurugram. The project has received the required approvals and is in the pre-launch stage.
It is estimated to have gross development value (GDV) orrevenue potential of ₹26,000 crore with 70% gross margin, the management said in the Q2 earnings call. The project is already witnessing healthy traction in the expression of interests, higher than initial expectations, the management added. The launch pipeline for FY25 also includes new phases in the Privana project, the Goa luxury project and the Mumbaislum rehabilitation project in Andheri West.The Dahlias launch is expected in Q3FY25, but other three project launches have been pushed to Q4 due to approvals.
Also Read: For DLF, luxury is the flavour of the season For FY25, the overall launch pipeline is around 12msf with a GDV of ₹41,000 crore and a large part is focused at the uber-luxury segment. Beyond FY25, the launch pipeline is around 25msf with a GDV of Rs63,500 crore. While the pipeline seems robust,
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