DLF Targets Rs 5,000 Crore Revenue By FY22 From Sale Of Independent Floors In Gurugram, Panchkula
Realty major DLF Ltd. is eyeing around Rs 5,000 crore revenue over the next two years from the sale of independent floors in Gurugram and Panchkula in Haryana.
DLF plans to construct 7 million sq ft area of independent floors on its existing plotted inventory, the company said in an investor's presentation. "Company is upgrading its existing plotted inventory into finished independent floors; monetization of this inventory is expected to be a relatively faster pace. Will help in filling the gap from sales in premium segments," DLF said.
As per the presentation, DLF plans to launch 3 million sq ft in DLF City, Gurugram and expects a sales value of around Rs 3,000 crore by 2021-22 financial year. Another 2 million sq ft of independent floors would be offered in New Gurugram with expected revenue of Rs 1,100 crore. The company is targeting sales worth Rs 850 crore from 2 million sq ft area in Panchkula/Mullanpur.
DLF's decision to come up with independent floors is driven by sluggish demand of luxury housing segment. "Luxury segment demand subdued and we anticipate that the recovery of this segment to be directly correlated to the buoyancy of the general economy," DLF said.
In the current market scenario, the company expects better sales traction in independent floors. Despite demand slowdown in the real estate sector, DLF's net sales bookings rose 21 percent to Rs 2,156 crore during April-December, 2019-20. Its sales bookings stood at Rs 1,788 crore in the year-ago period.
DLF's sales bookings stood at Rs 731 crore in the third quarter of this fiscal as against Rs 563 crore in the corresponding period of the previous year. The company said it is confident of achieving the sales target of Rs 2,700 crore for the entire 2019-20 financial year. During 2018-19, DLF clocked sales bookings of Rs 2,435 crore.
The company would continue to focus on faster monetisation of unsold completed housing stocks worth Rs 9,415 crore. Last week, DLF reported a 24 percent increase in consolidated net profit at Rs 414.01 crore for the quarter ended December despite a fall in income.
Its net profit stood at Rs 335.15 crore in the year-ago period. Total income fell 36 per cent to Rs 1,533.34 crore in the third quarter of 2019-20 from Rs 2,405.89 crore in the corresponding period previous year.