DLF sells 292 luxury homes in Gurugram for over 1,800 cr

The real estate firm sold 292 luxury homes in Gurugram for over 1,800 crore, within a few days of the launch of the project, and shares of DLF jumped nearly 4 per cent in Thursday's trade.

On September 26, DLF had launched its project The Grove'' at DLF phase 5 in Gurugram, Haryana. A PTI report cited by sources said the project had sold out in eight days of the launch, and that total sales revenue from the project is over 1,800 crore.

The scrip increased by 3.79 per cent to hit a high of 372.25 on the BSE after the development. The scrip has surged 26.30 per cent over its 52 week low of Rs 294.75 hit on June 20.

The company had a net sales booking of 1,453 crore, Rs 2,040 crore, including ONE Midtown JV, in the June quarter.

Antique Stock Broking said in its Q 2 earnings preview note on Thursday that DLF has been a key beneficiary of the revival in the NCR housing market due to its presence across the value chain and strong brand recall.

We expect a total of Rs 1,500 crore in sales from existing projects and additional 1,000 crore-plus in sales from newly launched independent floors in New Gurugram, Panchkula and DLF 5 on the back of strong traction in these premium products in the NCR market. DLF is likely to generate healthy cash flow through new launches, liquidation of inventory in the absence of large debt-funded capex and pursuit of short-cycle projects while continuing to benefit from its strong market position and strengthened balance sheet, Crisil said in September, while revising its outlook on the real estate firm to 'Positive' from 'Stable'.

The financial risk profile of DLF has strengthened marked by a reduction in debt levels and strong financial flexibility, according to the rating agency.

In certain key markets such as Chandigarh Tri-city, Chennai and Goa are planned by DLF, in addition to its core markets of Delhi and Gurugram, which will support the business risk profile of the company, according to Crisil.