(Reuters) – India’s DLF reported a jump in second-quarter profit on Friday, helped by sales of housing units launched in previous quarters in its key national capital region market.
The property firm reported consolidated profit before tax of 5.77 billion rupees (about $69 million) for the three-months ended Sept. 30, up 24% from last year.
Revenue from operations rose 47% to 19.75 billion rupees.
It also reported a net tax gain worth 4.67 billion rupees due to reversal of a tax liability, which resulted in its total profit for the quarter more than doubling to 13.81 billion rupees.
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KEY CONTEXT
India’s housing sector has seen sustained demand for home ownership over the past few quarters, particularly for higher-margin premium properties.
Property launches in the NCR, DLF’s mainstay market, rose 53% on-year during the reported quarter – the highest jump among seven major real estate markets in the country, data from consultancy firm Anarock showed.
There were no new launches from DLF in the quarter but the company managed to sell previously-completed apartments, also called sustenance sales, Antique Stock Broking said.
PEER COMPARISON
Estimates (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div
A growth (%) growth (%) rating* analyst price yield
s target** (%)
DLF 50.20 62.13 26.68 24.83 Buy 16 0.85 0.62
Max Estates 920.06 128.26 36.59 -78.38 Strong 2 0.81 –
Buy
Godrej Properties 61.17 83.62 42.71 33.83 Buy 17 0.86 –
Signatureglobal 22.61 16.60 91.86 147.62 Strong 3 0.77 –
Buy
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 84.0570 Indian rupees
(Reporting by Hritam Mukherjee in Bengaluru; Additional reporting by Manvi Pant; Editing by Varun H K)
