Realty major DLF’s sales bookings are likely to jump more than two-fold to around Rs 2,400 crore this fiscal year on rising demand of completed housing units.
DLF, the country’s largest realty firm in terms of market capitalisation, also expects to sell its finished housing inventories worth Rs 12,500 crore in the next 3-5 years, depending on the market conditions, it’s group CFO Ashok Tyagi said.
“Our quarterly sales bookings are around Rs 600 crore. So, we should exceed our sales guidance of Rs 2,000-2,250 crore for this financial year,” he told PTI in an interview.
Tyagi highlighted that the company has already achieved a net sales of Rs 1,788 crore during April-December period of the 2018-19 fiscal and expected momentum to continue in the current quarter.
The realty firm had achieved sales bookings of only Rs 1,000 crore during 2017-18 as it suspended sales for six months to comply with the provisions of new real estate law RERA that came into force from May 2017.
On unsold stocks, Tyagi informed that it has come down to about Rs 12,500 crore from Rs 15,000 crore few quarters earlier.
“At the current pace, we should be able to sell them in 5 years but if demand improves, these inventories can be cleared in 3 years,” he said.
Talking about impact of GST reduction, DLF’s CFO said the company only has completed housing units for sales, which are anyway exempted from GST.
On overall industry, Tyagi said the withdrawal of input tax credit could squeeze profit margins of developers if they do not increase prices.