DLF Q2 Results Review - Reiterates Pre-Sales Guidance Of Rs 13,000 Crore With Upside Bias: Motilal Oswal

Motilal Oswal Report

DLF Ltd. reported bookings of Rs 22.3 billion in Q2 FY24, up 9% YoY/QoQ and 13% above our estimate. In the absence of big-ticket launches, sales were largely driven by steady demand across ongoing/completed projects.

The ultra-luxury project, Camellias, continued to witness strong traction with bookings of Rs 7.2 billion. New products accounted for Rs 13.4 billion of sales, including Rs 3.5 billion from projects launched in Q2 FY24.

Sales could pick up sharply in H2 FY24, aided by a strong launch pipeline of 11 million square feet with gross development value of Rs 190 billion and inventory of Rs 42 billion across ongoing and completed projects.

Therefore, while DLF guides for pre-sales of Rs 120-130 billion in FY24, we expect bookings of Rs 150 billion with an upside bias as we expect a better response to its luxury project, Crest II.

Cash flow performance – Collections surged 88% YoY and 50% QoQ to Rs 23.6 billion. After construction costs and overheads, DLF generated a surplus of Rs 11.5 billion and utilised Rs 9.9 billion for dividend payout. It now has net cash of Rs 1.4 billion.

P&L performance – Revenue grew 3% YoY to Rs 13.5 billion, 11% below our estimate due to lower-than-expected recognition. Ebitda was up 6% YoY at Rs 4.6 billion and profit after tax increased 30% YoY, aided by a rise in other income and joint venture profit contribution from DLF Cyber City Developers Ltd.

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