DLF to hike property price in selective locations
India’s top listed real estate developer DLF Group has said it will increase prices of its properties in selective locations to minimize the impact of rising input costs. The company, however, did not share details such as by how much the prices will be hiked, on which projects and from when the increase will take place.
DLF Q4 profit falls 19% and net profit stood at Rs 345 crore in the quarter, compared to Rs 426 crore a year ago. In a presentation, the country’s largest realty firm said there will be “increase in selling prices where possible to offset impact of inflation”. “(DLF) will continue to monitor future inflation impact and revise strategies accordingly to protect margins,” the presentation said.
In a conference call with analysts, DLF Group Chief Financial Officer Ashok Tyagi said: “We have never saw such dramatic movement of prices that we witnessed in last two years… Labour costs have gone up over the roof since the Commonwealth Games.”
He further said the company used to purchase cement at pre-determined rate of Rs 160 per bag, which is at present ruling at about Rs 290 per bag. “We were forced to purchase cement at market rates in the second half of the fiscal,” he added.
For the entire 2010-11, the consolidated net profit went down 4.66 per cent to Rs 1,639.61 crore, while the sales rose by 28.80 per cent to Rs 9,560.57 crore.
Talking about its future projects, DLF Executive Director (Finance) Saurabh Chawla said: “We will launch 10-12 million sq ft this fiscal, skewed more towards plotted development.”
The presentation said out of the 12 million sq ft of planned launch, 10 million sq ft will be plotted developments in Indore, Gurgaon, Chandigarh and Lucknow, while the rest will be group housing projects in Gurgaon.
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