DLF (DLF) Q2 24/25 earnings summary

Executive summary

• Q2FY25 revenue rose 48% year-over-year to ₹2,181 crore, with normalized PAT up 24% to ₹781 crore and reported PAT at ₹1,387 crore due to a one-time deferred tax liability reversal.

• H1FY25 pre-sales reached ₹7,094 crore, with strong cash flow and a positive outlook for H2.

• Free cash flow generation exceeded ₹2,000 crore per quarter, maintaining a net cash positive position of ₹2,831 crore despite higher dividend payouts.

• Major new launches, including Dahlias, are expected to drive future growth, with strong initial demand and high margins.

Financial highlights

• Gross margins for Q2FY25 stood at 45%, with Dahlias reporting 70%+ margins and construction costs around ₹18,000 per sq ft on a carpet area basis.

• Rental EBITDA for FY25 expected at ₹5,300 crore, rising to ₹6,800 crore in FY26.

• Consolidated balance sheet as of 30.09.2024: total assets ₹62,579 crore, equity/reserves ₹40,227 crore.

• Earnings per share (EPS) for Q2FY25 stood at ₹5.58, compared to ₹2.52 in Q2 FY24.

• Net cash flow from operating activities for H1 FY25 was ₹2,563.41 crore, up from ₹2,151.91 crore in H1 FY24.

Outlook and guidance

• Confident in achieving full-year sales guidance of ₹17,000 crore, with strong pre-launch interest in Dahlias and upcoming launches in Privana and Mumbai.

• Plans to launch ₹1+ lakh crore (37 msf) of new products over the medium term.

• Rental income to see significant growth as new assets become income-generating in FY25 and FY26.

• Gross debt reduction remains a priority, with net debt already at zero and gross debt targeted to be zero in the next 3-4 quarters barring major new opportunities.

• Dividend of ₹5 per share (face value ₹2), totaling ₹1,237.66 crore, declared in August 2024.