In its July-September quarter investor presentation, DLF has also reported on the operational and financial performance of its JV venture DCCDL. Some commercial properties are still held by the parent company DLF.
DCCDL’s office rental income grew 14 percent to Rs 801 crore in the second quarter of this fiscal from Rs 701 crore a year ago. Its retail revenue rose 54 percent from Rs 120 crore to Rs 184 crore.
Total rental income rose 20 per cent to Rs 986 crore in July-September 2022-23 from Rs 821 crore a year ago.
“Rental income grew 20 percent year-on-year (YoY); driven by a strong retail rebound,” the filing said.
DCCDL currently has an operational portfolio of 39.6 million square feet. Another area of 5.3 million square meters is under construction.
On the financial front, DCCDL’s total revenue increased by 22 percent to Rs 1,369 crore in the second quarter of this fiscal from Rs 1,123 crore a year ago. Net profit rose 54 percent to 355 million from 231 million euros.
Its net debt rose to Rs 19,261 crore at the end of the September quarter, from Rs 18,803 crore on June 30, 2022.
On the outlook for the office portfolio, DCCDL said occupancy levels are on the rise. “Occupants need more time to complete worksite requirements; Office work continues to improve; Occupant attendance is around 67 percent (due to COVID),” the presentation said.
In retail properties, DCCDL said pains are improving month-on-month and are around 92 percent of pre-Covid-18 levels.
“Consumption across segments remains healthy growth; Inflation remains at high levels; may lead to marginal impact on discretionary spending. Business continues to experience double-digit growth; Sales are higher than pre-COVID levels,” the presentation said. .
DLF is India’s largest real estate company in terms of market capitalization. It has developed more than 153 real estate projects of 330 million square feet.
The company has a development potential of 215 million square feet in residential and commercial segments.
DLF is primarily engaged in the business of developing and selling residential real estate (the development business), and the development and leasing of commercial and retail properties (the annuity business).
In December 2017, DLF formed a joint venture with GIC after its promoters sold their entire 40 percent stake in DCCDL for Rs 12,000 crore. This deal involved the sale of 33.34 per cent stake in DCCDL to GIC for around Rs 9,000 crore and the remaining shares being bought by DCCDL for around Rs 3,000 crore.