New Delhi, DCCDL, a joint venture company of DLF and GIC, reported a 26 per cent rise in net profit to Rs 593 crore during the June quarter. The rise was due to rise in income from rental-based commercial properties.
DLF Cyber City Developers Ltd (DCCDL)’s net profit stood at Rs 470 crore in the same period a year ago.
Total income during the April-June period of this fiscal rose 12 per cent to Rs 1,739 crore from Rs 1,553 crore in the same period last year.
DCCDL is a joint venture of DLF and Singapore’s sovereign wealth fund GIC. DLF holds around 67 per cent stake in the joint venture company.
DCCDL has an operational portfolio of a total of 4.4 crore sq ft of commercial space (office and retail) in various cities including Gurugram.
The joint venture company’s net debt stood at Rs 17,287 crore at the end of the quarter.
The DLF Group is primarily engaged in the business of construction and sale of residential properties (development business) and construction and leasing of commercial and retail properties (annuity business).
The majority of DLF Group’s commercial properties are located in DCCDL.
Apart from the joint venture, DLF Ltd has a small portfolio of about 20 lakh sq ft of office and retail spaces.
Addressing shareholders at the annual general meeting (AGM) on August 4, DLF Chairman Rajiv Singh said DLF, India’s largest realty company, has set an “ambitious” target of crossing Rs 10,000 crore annual rental income from the company’s commercial properties in the medium term.
Currently, the annuity portfolio of DLF Group, including DCCDL (mainly office complexes and shopping malls), is around 46 lakh sq ft, with annual rental income of over Rs 6,000 crore.
He told shareholders that the company’s annuity portfolio, which includes office, retail and hospitality, is growing steadily.
The chairman said new buildings have been completed in ‘Downtown Gurugram’ and Chennai projects. Additionally, three new retail properties are scheduled to open in the near future, which will further strengthen its portfolio.
“We are equally excited and committed to growing our annuity portfolio and have set an ambitious target of crossing annual rental revenue of Rs 10,000 crore in the medium term,” Singh had said at the annual general meeting.
Since inception, DLF has developed over 185 real estate projects and has developed over 352 million sq ft of area.
The group has a development potential of 280 million sq ft across residential and commercial segments, including projects currently under construction and identified projects.
