DLF Shares Surged 5% Despite Mixed Q3 Results: Profit Up 61% YoY
DLF, a leading real estate company, saw its shares rise by 5.2% despite reporting mixed results for the third quarter. The company's net profit surged 61% YoY, but revenue remained flat.
DlfReal EstateStock MarketQ3 ResultsFinancial PerformanceReal EstateJan 27, 2025
This spike in buying occurred despite the company reporting mixed Q3 results.
By around 1 07 PM, DLF's share price was up 1.88% at Rs 708.15 per share on the BSE, while the BSE Sensex was down 0.98% at 75,443.20.
The market capitalisation of the company stood at Rs 1,75,573.86 crore.
Over the past year, the 52-week high of the stock was Rs 967 per share, and the 52-week low was Rs 689.9 per share.
On Friday, after market hours, DLF reported a 61% year-over-year increase in its consolidated net profit for the third quarter of the current financial year (Q3FY25) at Rs 1,058.73 crore, up from Rs 655.71 crore in Q3FY24.
However, the company's revenue from operations grew marginally by just 0.5% to Rs 1,528.7 crore in Q3FY25 from Rs 1,521.2 crore in Q3FY24.
On a sequential basis, DLF's net profit fell by 23% and revenue by 22% from Rs 1,381.2 crore and Rs 1,975 crore recorded in Q2FY25, respectively.
The net profit growth can be attributed to the company's strong performance in both development and rental businesses.
DLF stated that its development business continued its growth trajectory in the ongoing quarter, delivering record new sales bookings of Rs 12,093 crore in Q3FY25.
The company's latest super luxury offering, The Dahlias in DLF 5, Gurugram, performed exceptionally well, garnering Rs 11,816 crore of new bookings in the opening quarter.
The overwhelming response to this new offering has enabled the company to surpass its annual guidance.
For its rental business, DLF is on track with the development of subsequent phases of Downtown, Chennai, and Downtown, Gurugram, totaling around 11 million square feet (msf).
The company mentioned that ongoing projects, including Atrium Place in Gurugram and three retail malls, are expected to be completed soon, with rents commencing in the next financial year.
Despite the mixed Q3 results, DLF shares have lost 11.7% in the past year, compared to the Sensex's rise of 5.9%.
Frequently Asked Questions
What was the performance of DLF shares in trade on Monday?
DLF shares gained 5.2% in trade on Monday, hitting an intraday high of Rs 731.4 per share.
How did DLF's net profit and revenue perform in Q3FY25 compared to the previous year?
DLF reported a 61% year-over-year increase in its consolidated net profit for Q3FY25 at Rs 1,058.73 crore, while its revenue from operations grew marginally by just 0.5% to Rs 1,528.7 crore.
What was the sequential performance of DLF's net profit and revenue in Q3FY25?
On a sequential basis, DLF's net profit fell by 23% and revenue by 22% from Rs 1,381.2 crore and Rs 1,975 crore recorded in Q2FY25, respectively.
What are the key drivers behind DLF's net profit growth?
The net profit growth can be attributed to the company's strong performance in both development and rental businesses, particularly the record new sales bookings of Rs 12,093 crore in Q3FY25.
What future projects is DLF developing and when are they expected to be completed?
DLF is developing subsequent phases of Downtown, Chennai, and Downtown, Gurugram, totaling around 11 million square feet (msf). Ongoing projects, including Atrium Place in Gurugram and three retail malls, are expected to be completed soon, with rents commencing in the next financial year.
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