DLF Cybercity-GIC joint venture hopes to double its portfolio in a decade

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(DCCDL), in a joint venture with Singapore’s sovereign wealth fund GIC, is planning to double the size of its portfolio to almost 60-million square feet over the next decade, the firm said while announcing its results for the June quarter.

India’s largest enterprise reported a 56 per cent accelerate in its consolidated net profit to Rs 1.72 billion for the first quarter. Its net profit stood at Rs 1.1 billion in the year-ago stage, the firm said in its filing.

Total income, however, declined to Rs 16.57 billion during the April-June stage of this fiscal year from Rs 22.11 billion in the corresponding stage of the previous year. DLF’s net profit increased despite a drop in total income as the firm earned Rs 2.41 billion as its share of profit in associates and joint ventures.

However, the enterprise said the figures were not comparable as it adopted from April a new accounting standard, Revenue from Contracts with Customers, the notified. “The new standard focuses on recognising revenues when obligations of the firm have essentially been completed, risks have been nearly eliminated for the firm and control over the property is deemed to be passed over to the buyer,” the firm said.

DLF has a joint venture with Singapore’s sovereign wealth enterprise for commercial business. In the JV enterprise, DLF owns 66.67 per cent stake, while has the rest. bought stake in DCCDL for Rs 90 billion in December last year.

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The firm said it had achieved completion in almost all of the projects and significant deliveries were underway.

“These deliveries are expected to be completed within next couple of years, which shall result in reversal being accrued back over the same stage,” the firm said.


It said new sales book during the quarter stood at Rs 6 billion. Of it almost Rs 5 billion it has sold in the DLF Crest project. “Given the current momentum, the firm remains on track to achieve fresh sales booking of Rs 20 billion to Rs 22.5 billion in the current fiscal year,” the firm said.

It said most of its projects were ready to move in, and the firm was witnessing a steady growth in occupation of its recently delivered projects.

DLF said commercial leasing business continued to grow steadily and was experiencing healthy momentum. “The firm continues to incur capex for special building the portfolio and expects the under-construction portfolio of around 3.7 million square feet to begin generating revenues from next fiscal year,” it said.

In its bid to be a debt-free enterprise, DLF is going ahead with its plan via equity infusion during the current year focusing on monetisation of finished inventory, which would result in surplus cash flows. It would be primarily utilised for debt reduction and balance cash surplus would be utilised by the firm to re-invest in development of new projects for both sale and lease business.

DLF said it was confident that investment in new development pipeline would achieve desired returns. In the first quarter, it claimed to have achieved break-even cash flows from operations.

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