DLF, the country’s largest property developer, plans to grow its group PAT (profit after tax) and cash flows by two times and earn annual rentals of Rs 10,000 crore by FY30.
The company is looking to incur a capex of over Rs 26,000 crore across its annuity and development business. It aims to become gross debt zero in the near term and hopes to achieve group net debt zero position by FY30, according to an investor presentation by the company.
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DLF also said it plans to move towards a dividend payout ratio of 50% of PAT over time.
The realty player said it is targeting over 45% gross margins from the development business and an estimated Rs 25,000 crore surplus cash to be realised from launched products.
DLF reassessed its land development potential, revising it from 169 million square feet to 196 million sq ft, based on updated zoning and TOD/TDR regulations. This leads to an incremental potential of 27 million sq ft. Of this, 23 million sq ft is under development, 29 million sq ft is in the pipeline, and 144 million sq ft remains as residual developable land bank.
While TOD is transit-oriented development, TDR is transferable development rights, which is gained by a developer by doing socially relevant projects.
The company has revised land development potential at its core market Gurugram to 140 million sq ft from 99 sq ft earlier, according to the presentation released by the company.
“We will continue to evaluate opportunistic replenishment to further enhance the potential of our existing land bank, which is sufficient for over 20 years of steady growth,” DLF said.
“DLF holds a high-quality land bank acquired at opportune times. This land bank is primed for high-value monetisation in the coming years,” Motilal Oswal said in a report on Monday.
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The company has 4.5 million sq ft of super luxury project, which have margins of over 65% under execution and 1 million sq ft of launches. In luxury where margins are over 40%, it has projects of 12.5 million sq ft under development and 26 million in the pipeline. In premium where margins are over 30%,
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