Shares of DLF rallied over 8 per cent in intraday trade on the Bombay Stock Exchange on Friday on robust September quarter earnings as well as inclusion in the MSCI Global Standard Index.
Real estate major DLF on Thursday reported 18 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 444 crore for the second quarter ended September 30, 2019, driven by higher revenue. Consolidated revenues rose 26 per cent YoY to Rs 1,940 crore, while EBITDA (earnings before interest, tax, depreciation and amortisation) margins increased to 30 per cent for the development business, DLF said in a regulatory filing.
Boosted by strong Q2 earnings, DLF share price gained as much as 8.59 per cent to touch intraday high of Rs 209 apiece on the BSE, after opening tad higher at Rs 196 against previous close level of Rs 192.45. The stock was trading near its 52-week high level of Rs 209.40 touched on April 3, 2019 in the intra-day trade.
There was also surge in volume trade as 19.03 lakh shares changed hands on the BSE as compared to two-week average of 6.76 lakh shares.
On the National Stock Exchange (NSE), stocks of DLF were trading 8.29 per cent higher at Rs 208.45. The scrip touched an intraday high of Rs 209.25 after opening higher at Rs 196.
The investors were also buoyed by DLF shares inclusion in the MSCI Global Standard Index with effect from November 26, 2019.
In Q2FY20, DLF's development business performed well. The company achieved net sales of Rs 725 crore in this quarter and expected this momentum to sustain. "Our belief in New Gurgaon has been vindicated by the land sale to American Express, providing a significant growth catalyst in this region," DLF said in a filing to the BSE.
The company sold a land parcel admeasuring 9 acres (approx.) to American Express to set up its office campus in Sector 74, more commonly known as the New Gurgaon area. At a consideration of Rs 300 crore, this translates into approx. Rs 33 crore per acre.
DLF said that the quarter gone by witnessed a significant transformation of the capital structure, resulting into a very healthy balance sheet for the company. Pursuant to the settlement of inter-company payables, the net debt for the company stood at Rs 4,461 crore at the end of the quarter and is committed to reduce in the near term.
Meanwhile, the benchmark S&P BSE Sensex was trading 0.29 per cent lower at 40,535.79 points.
Edited by Chitranjan Kumar