DLF builds up as Q1 sales improve

DLF is currently the top gainer on the BSE. Enthused by its increase in sales for Q1FY16 despite the fall in net profit, the stock hit a new 52-week high today at Rs.124.80 and it remains at the same levels, up 9%. Some 17 lakh shares have changed hands since the morning.

The realty developer posted a 29% (YoY) rise in sales at Rs.2231 crore for Q1FY16. Its EBITDA for the quarter was up 9% at Rs.942 crore. The company has said that its net leasing rose to 0.21 million square feet v/s 0.1 million square feet (QoQ). Its finance cost jumped up 8% (YoY) at Rs.604 crore and this pushed down the net profit to Rs.121 crore, down 5%.

The company said that it was not launching any new projects as of now as the market I tepid. It is concentrating on completing existing projects and work on delivering these projects, to cash in when the market recovers. The company expects to deliver around 20 million square feet over next few quarters. DLF currently has a land bank of 300 million square feet and of this, 50 million square feet is under construction.