The shares of India’s leading real estate company came into focus on Monday after it announced plans to invest Rs 6,000 crores in Gurugram’s prime commercial spaces.
Stock Performance
With a market capitalization of Rs. 1,64,001.78 crore, DLF Ltd jumped 1 percent in Monday’s trading session and made a high of Rs. 670.50 per share compared to its previous closing price of Rs. 665.40 per share. The stock retraced from its day’s high and was trading at Rs. 662.55 which is a slight decrease compared to the previous close.
What Happened
DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore’s sovereign wealth fund, GIC, plans to invest Rs. 6,000 crore to develop 7.5 msf of premium office and retail spaces in Gurugram. This initiative aims to meet the growing demand for high-quality, sustainable commercial properties.
Construction has already commenced on the 5.5 msf of Grade A++ office spaces in the high-end commercial project, ‘DLF Downtown, Gurugram’. Further, work has also begun on the ‘DLF Mall of India’ spanning 2 msf. According to the company’s latest investor presentation, 3.7 msf of development has already been completed.
DCCDL’s rental income from office and retail spaces grew by 10 percent to
Rs 1,194 crore in Q3 FY25. During the same period, DCCDL’s revenue increased by 9 percent to Rs 1,609 crore. Net profits saw a sharp rise by 117 percent reaching Rs 941 crore, on account of sale of IT Park, Kolkata.
Management Commentary
“Global companies, particularly those in the technology sector, are attracted by high-quality talent and world-class commercial spaces. These companies demand Grade A++ office spaces that are highly rated for sustainability, green initiatives, social infrastructure, and scalability…” said DLF Vice Chairman and MD of Rental Business, Sriram Khattar, while discussing trends in the Indian office market.
Company Overview
DLF Ltd, one of the leading real estate development companies in India has a strong presence in the Delhi-NCR and Tamil Nadu regions. It covers land acquisition, construction, as well as sales. The company also engages in leasing, power generation, property maintenance, hospitality, and recreational services, overall supporting its real estate ventures.
Financial Performance
Looking at the financials, DLF Ltd reported a slight increase in revenue from Rs. 1,521 crore to Rs. 1,529 crore in Q3 FY25. This was accompanied by a massive 61 percent increase in net profits from Rs. 656 crore to Rs. 1,059 crore during the same quarter.
Written by Shwetha Sairam
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