Consolidated revenues came in at Rs 1,940 crore, marking an increase of 26 per cent as compared to the previous quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 575 crore, with EBITDA margins continuing at 30 per cent for the development business.
EBITDA for DLF Cyber City Developers Ltd (DCCDL) -- its joint venture with Singapore's sovereign wealth fund GIC -- stood at Rs 1,024 crore and continues to grow steadily.
"The development business has been performing well," the company said in a statement. "We have achieved net sales of Rs 725 crore in this quarter and expect this momentum to sustain. Our belief in New Gurgaon has been vindicated by the land sale to American Express, providing a significant growth catalyst in this region."
DLF sold a land parcel measuring nine acres to American Express to set up its office campus in Sector 74, more commonly known as the New Gurgaon area. At the consideration of Rs 300 crore, this translates into Rs 33 crore per acre. The transaction has set up new benchmark valuations for this micro-market in which the company holds 25 million square feet of prime commercial land.
The development of this office campus has paved the foundations for developing the next business destination in this market on similar lines as that of DLF Cyber City, said the company.
"We continue to witness encouraging response from the market for our completed inventory, especially in the micro-markets of DLF5/New Gurgaon in Gurugram. The company remains focussed on monetising the finished inventory. The development pipeline for the development
business for the near term stands at about 16 million square feet."
The rental business continues to demonstrate growth while unlocking the embedded potential within the portfolio. With the DCCDL payable settlement and the transfer of rental assets completed, the objective of creating a strong integrated rental platform has been achieved, said DLF.
The DCCDL platform through the consolidation has grown its portfolio now at about 33 million square feet and the development potential going up to 30 million square feet. With the offtake in Cyber Park, DCCDL Group has embarked on the creation of its future pipeline. It has finalised its plan of developing a marquee mixed-use development in close proximity to its existing business district of DLF Cyber City.
The company has broken ground for the first phase of this development with about 3.3 million square feet. The total potential of this development will be 11 million square feet and also house an ultra-modern and futuristic retail destination.
DCCDL is also set to embark on the development of 2 million square feet at Taramani in Chennai out of the total development potential of 7 million square feet.
DLF said the quarter gone by witnessed a significant transformation of the capital structure, resulting in a healthy balance sheet. After the settlement of inter-company payables, net debt for the company stood at Rs 4,461 crore at the end of the quarter and is committed to reducing in the near term.
In another announcement, DLF said Vivek Anand will be the new Chief Financial Officer. He brings with him an extensive background in corporate finance, treasury, financial planning and analysis, tax, investor relations, strategic planning and risk management.