DLF sees residential demand picking up; mall biz revival expected

DLF reported earnings for the June-ended quarter. The sequential decline in revenue has been less than expected and EBITDA margin has come in at a 14-quarter high. Bookings are also strong and above Rs 1,000 crore for the third consecutive quarter. Ashok Tyagi, whole time director at DLF, discussed the earnings.

Residential demand has bounced back after the end of the first lockdown. “It has been a continuous growth curve from October till August. So I don’t think we can ascribe it to just being one quarter of pent-up demand, there is genuinely some degree of residential demand which has come back in the market,” he said.

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DLF’s signature product, Camelias is selling very well; mid-market products are also selling very well. “There has generally been a positive uptick in the residential segment definitely in NCR but also in other geographies that we operate in,” he shared.

The company is witnessing a strong absorption at the price points that it has been offering. Tyagi believes, on the pricing standpoint, the industry across the board is going to be more pragmatic.

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The malls were completely shut down in NCR during the second wave of COVID-19 lockdown. “Post opening up, the malls footfalls and more importantly, the billings have come back on a far stronger wicket. The malls still suffer because F&B and cinemas continue with restrictions. As these things start to get relaxed, hopefully, the mall business should come in even stronger,” he explained.

In terms of real estate investment trust (REIT) timeline, he said, “We are getting our internal structure and everything ready for becoming REIT-ready four quarters from now, maybe by mid-next calendar year.”