DLF plans to invest Rs 1,700 crore to develop 7 mn sq ft of finished homes on plots
These would be developed across Gurgaon, New Gurgaon and Panchkula.
DLF plans to invest about Rs 1,700 crore to develop close to about 7 million sq ft of finished homes on its already developed plots in Gurgaon, New Gurgaon and Panchkula and start selling them within the next fiscal, top DLF officials told Moneycontrol.
The company intends investing close to Rs 1,700 crore towards developing the plots and offering finished homes spread across 7 million sq ft, they said.
“We plan to upgrade our existing plotted inventory to independent floors, which generally has shown better traction in the market. The current plan is to offer about 7 million sq ft of finished homes on its already developed plots. We expect to sell the same within from next fiscal and believe monetisation of this inventory will take next 18-24 months,” officials said.
The company has plotted inventory in Phase 1 to Phase 4 in Gurgaon, Garden City in New Gurgaon, and Panchkula. The 7 mn sq ft will be developed into stilt plus four floors structures in phases, officials said.
In its analysts call, the company said that they expect to build 4 msf in the first phase. “The construction typically takes anything between seven to nine months, and we intend monetising these ready to occupy homes in the new fiscal itself,” sources said.
At the launch of DLF Downtown in Chennai’s Taramani area, Mohit Gujral, CEO, DLF had told Moneycontrol that the company had several land banks across the country and “We’ve made investments in land banks and whenever opportunity unfolds we constantly develop them. What potential the land eventually could have sometimes could be very different from where we started.”
In its regulatory filing on Feb 6, the company said that “Luxury segment is witnessing subdued demand currently. This trend may continue for a few quarters and will recover along with the economy”.
The company is now working towards re-positioning its finished inventory and bringing differentiated products according to the current market dynamics, DLF said.
The company reported a 24 per cent increase in consolidated net profit at Rs 414.01 crore for the quarter ended December despite fall in income on February 5, 2020.
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, DLF said in a regulatory filing.
Despite the fall in income, the company’s net profit increased due to an exceptional gain of Rs 231 crore during the December quarter.
DLF declared an interim dividend of Rs 1.20 per share.
The group has an annuity portfolio of over 35 million sq ft, including office and retail space.