DLF all set to drive long-term growth in the rental business
Post the swearing in of the new government in the center, we see a lot of activities in the real estate sector. The country’s biggest realtor DLF is also gearing up to reap the benefits of this positive sentiment. Realty major, DLF has asked the company’s independent directors to review its rental business and suggest ways to drive long-term growth.
DLF, the country’s largest real estate firm, earned a rental income of about Rs 2000 crore last fiscal by leasing its commercial properties including office and shopping malls. In a meeting held on August 29, its board of directors asked the independent directors to evaluate, review and recommend various strategic options available for driving the long term growth of rental business.
The independent directors had also been asked to suggest optimum structure for the rental business so that the maximum gain can be earned by minimum investments. This will improve efficiency and reduce conflict of interests if any between the affiliated person/entities. DLF posted a net profit of Rs. 646 crore over a sales turnover of Rs. 9790 crore. It has a land bank of about 300 million square feet, out of which 57 million square feet is under construction.
The company is looking at improving the profit margins in the current fiscal as now the economic conditions are favourable for a rapid growth of the real estate sector. Since there are many MNCs which are in an expansion mode, the rental business in the commercial space will be a profitable option.
Source- Deccan Chronicle
Business, DLF, DLF Estate Developers, DLF Group, DLF India, DLF properties, DLF realty major, long-term growth
