DLF to Expand Retail Footprint with New Shopping Mall in Gurugram

Realty giant DLF is preparing to start construction on a new shopping mall spanning 25 lakh square feet in Gurugram this quarter, according to Sriram Khattar, the company’s Vice Chairman and Managing Director of Rental Business. This decision comes as a response to increased demand for high-quality real estate space from retailers, with construction costs estimated at around Rs 1,700 crore.

Currently, DLF holds a retail portfolio of approximately 42 lakh square feet across nine properties primarily located in the Delhi-NCR region. DLF Ltd. directly manages about 3.4 lakh square feet of this retail space, while the remainder is overseen by DLF Cyber City Developers Ltd, a joint venture between DLF and Singapore’s sovereign wealth fund GIC.

Khattar, who has recently taken up his new position, noted that the retail sector has seen a significant rebound post-COVID-19, with notable increases in foot traffic and sales within shopping malls. In addition to the Gurugram mall, the company is also working on a premium shopping destination in Goa, covering around 6 lakh square feet.

To meet the needs of local residents, DLF is constructing high-street shopping centers adjacent to its housing projects, with ongoing developments at DLF Phase 5 in Gurugram and Moti Nagar in Delhi.

During a recent investors’ presentation for the first quarter of the fiscal year 2023-24, DLF forecasted a substantial increase in retail presence, projecting that its portfolio could double over the next four to five years. This growth trajectory aligns with DLF’s strong performance over the past five years, reinforcing its status as a key player in the real estate management and development sector.

Financially, DLF Cyber City Developers Ltd. reported consolidated revenues of Rs 1,412 crore for the April-June quarter, which is a year-on-year increase of 12%. The consolidated profit for the same period was Rs 391 crore, reflecting a 21% increase year-over-year.

In the first quarter of the current fiscal year, DLF’s retail division generated revenues of Rs 187 crore. Overall, DLF’s consolidated net profit rose by 12% to Rs 527 crore, up from Rs 469.57 crore during the same quarter last year. Total income for the quarter slightly increased to Rs 1,521.71 crore from Rs 1,516.28 crore in the corresponding period of the previous year.

DLF’s market capitalization is approximately $15.98 billion, with a P/E ratio of 63.49. Despite experiencing a revenue growth decline of 5.7% year-over-year for the first quarter of 2024, the company has maintained a gross profit margin of 56.84%. Additionally, DLF offers a dividend yield of 0.75%, showcasing its commitment to providing consistent returns to shareholders, noted by the fact that DLF has maintained dividend payments for 17 consecutive years.

DLF Group primarily focuses on the development and sale of residential properties, alongside the development and leasing of commercial and retail spaces. The group has successfully completed over 158 real estate projects, covering more than 340 million square feet. With an annuity portfolio exceeding 42 million square feet, DLF possesses land banks for the development of 215 million square feet across both residential and commercial sectors.