Professional Documents
Culture Documents
November 3, 2015
SAFE HARBOUR
This presentation contains certain forward looking statements concerning DLFs future
business prospects and business profitability, which are subject to a number of risks and
uncertainties and the actual results could materially differ from those in such forward looking
statements. The risks and uncertainties relating to these statements include, but not limited to,
risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth,
competition , economic growth in India, ability to attract and retain highly skilled
professionals, time and cost over runs on contracts, government policies and actions with
respect to investments, fiscal deficits, regulation etc., interest and other fiscal cost generally
prevailing in the economy. The company does not undertake to make any announcement in
case any of these forward looking statements become materially incorrect in future or update
any forward looking statements made from time to time on behalf of the company.
Performance Scorecard
Sl. No.
I.
II.
Sales Volume
"DLF 5"
New Gurgaon
National Devco
Leasing
Office
Malls
Target
Achieved
YTD FY16
1.5 msf/ yr
2.5 msf/yr
3.5 msf/yr
0.53 msf
0.0 msf
(0.12) msf
1-1.5 msf
0.13 msf
III.
Completion
5.84 msf
IV.
Net Debt
Rentco (attributable)
Devco
22520 crs
14300 crs
8220 crs
Company Strategy.
.Create a Large Rental Business platform in partnership with large, long term,
institutional investors
In August 2014, The Board had constituted an Audit Committee under the chairmanship of Mr.
K.N. Memani to comprehensively evaluate, review and recommend to the Board various strategic
options to drive sustainable, long term growth of the rental business and reduce conflicts of
interest, if any, inter-se affiliated persons / entities in keeping with the best corporate governance
practices.
After extensive deliberations on various options with the advisors, the Audit Committee
recommended to the Board to consider the preferred option that the CCPS holders sell the CCPS
to unrelated third party investors and subject to applicable laws, re-invest substantial portion of
the sale consideration (net of taxes/other charges) back into the Company subject to the consent
of the CCPS holders and the following conditions:
The Company shall have the mandate to determine the strategic terms of investment
including selection of the third party investor(s) and the Company shall oversee and facilitate
the transaction, and
The Company shall appoint the bankers, transaction advisor, legal & financial due diligence
vendors, etc
Post the completion of the proposed transaction, DLF to continue to hold 60% equity interest in
DCCDL on a fully diluted basis
Macro Outlook..
During the Quarter in review, RBI cut interest rates by 50bps. However Banks have not still transmitted the full
impact of the RBI rate cuts of 125 bps over the last few quarters.
IIP for the month of August came to a healthy 6.4% which was a 34 month high, but it is still early days.
Capital goods continues to be an important driver of IIP growth momentum, with encouraging contribution
from the high technology segments. Government capex is supporting this growth in contrast to the Private
Sector which continues to show limited appetite for capex given the stretched balance sheets and low
capacity utilizations.
From sector perspective, the RE industry continues to face difficult times. Lack of liquidity to complete half
finished projects are forcing developers to sit on WIP inventory. Customers have already paid 80-90% of the
price. Developers access to liquidity is limited given their stretched balance sheets and costs are exorbitant.
More pro-active steps will have to be taken by the Government, in close coordination with the RBI, to
provide liquidity to stalled developments. Given the price points at which these projects were sold, the
developers neither have the capability nor any incentive to finish the projects. It will take years for this to
play out.
Additionally, most of the new locations are plagued with infrastructure deficits resulting in further
constraints and low consumer interest
Even though well intentioned, some provisions of the current draft of Real Estate Regulatory Bill, will
harm the sector more as it effects the consumer adversely in the absence of clear initiative to resolve
delays in regulatory approvals. Besides, an additional layer of approvals shall only cause delays in
delivery and increased pricing.
DevCo:
0.24 msf net sales booking of Rs 575 crore booked in Q2FY16 vs 0.16 msf net sales
booking of Rs 1035 crore in Q1FY16
Project Completion 4.63 msf [ Horizon Centre + Mall of India Noida + Indore Plotted ] vs
1.21 msf duirng Q1FY16
RentCo:
(0.08) msf Net Leasing [ Gross leasing 0.83 msf and terminations 0.91 msf ] during
Q2FY16 vs 0.21 msf for Q1FY16.
The terminations have been as per Budgetary plan. New leasing is happening at
leasing rates substantially higher than the exit leasing rates of the terminations.
Given the pipeline of new leasing, the Company is confident of achieving the net
leasing of 1-1.5 msf for FY16.
Mall of India Noida - 1.50 msf Leased out of 1.97 msf Gross Leasable Area and expected
7
to be operational by Q3FY16
0.22
-0.02
26242
10004
0.53
-0.01
29826
4306
0.002
0.04
43722
2224
0.02
-0.15
38774
4725
Q2FY16
Leasing in (msf)
Avg Rate (psf)
Leasing
Office
Retail Malls
H1FY16
-0.08
0.00
70
75
H1FY16
Leasing in (msf)
Avg Rate (psf)
0.13
0.00
64
102
Size (msf)
% leased
Office
Office
10.57
0.62
94.49
98.95
DAL ( SEZ's )
Kolkata/Chandigarh
Office
Office
13.47
2.93
92.91
85.80
Office
0.17
100.00
Malls
Delhi
Noida
Chandigarh
* Includes Collaborator area.
Retail
Retail
Retail
1.42
1.97
0.19
89.21
74.61
89.19
Gurgaon
DLF Cyber City Developer *
Others
Size (msf)
0.62
1.37
0.87
5.20
0.23
0.34
2.58
4.35
3.44
1.58
4.03
1.20
0.07
0.57
0.48
1.13
5.20
0.20
0.28
2.31
4.31
2.77
1.23
3.54
0.59
0.06
0.22
1.25
2.18
1.03
1.24
2.61
3.55
0.55
0.57
0.98
0.64
0.89
1.22
1.21
1.31
0.49
0.33
Expected
handing over
Next 4 to 5 Qtr
Legacy
Express Greens*
Garden City-91-92-Ph-II
Corporate Greens*
Capital Greens
GK King's Court
NTH-Kolkata*
Kochi
Banglore*
Hyderabad
Lucknow*
Panchkula
Mullanpur*
Shimla
Kasauli
New Projects
SkyCourt
Ultima
Regal Garden
Primus
Crest
Camillias
Bhubneshwar
My Pad Lucknow
* Area handed over is excluded from total size
10
Development Business
Lease Business
Total
107
26
133
Bangaluru
30
30
17
20
Chennai
15
21
Hyderabad
14
15
Chandigarh Tri-City
19
19
32
41
238
46
284
Kolkata
Other Indian Cities
Total
The Development Potential is the Best estimate as per the Current Zoning plans on Land owned by the
company/Group companies, or lands for which the Company has entered into arrangements with third
parties including Joint Development/Joint Venture Agreements/Other Arrangements for Economic
Development of sid lands owned by such third parties. Some of these arrangements include making residual
payments to the Land Owners before the development potential can be fully exploited.
11
DevCo Q2 FY16
Total msf
Particulars
Q2-16
Q1- 16
Q2 15
250
Sales Status
Opening Balance
35.65
36.70
45.61
0.24
0.16
0.61
Less : Completion
(2.84)
(1.21)
(6.95)
Closing Balance
33.05
35.65
39.27
Series1
225
Q1' 16
Under Construction
Q2' 16
Opening Balance
43.47
43.47
53.68
0.00
0.00
0.00
Less:- Completion
(2.84)
(1.21)
(6.95)
Closing Balance
39.42
42.26
46.73
45
40
35
30
25
20
15
10
5
Series1
Q1' 16
Q2' 16
12
RentCo Q2 FY16
Total msf
Particulars
Q2-16
Q1- 16
Q2 15
Lease Status
Opening Balance #
Add:- Lease Booked During the Qty
Less :- Cancellation
Less :- Sold / Adjustment
Closing Balance
28.79
27.11
26.37
0.83
0.60
0.58
(0.91)
(0.39)
(0.28)
28.71
27.32
26.67
55
50
45
40
35
30
25
20
15
Opening Balance
1.96
1.96
2.81
1.56
0.00
0.00
(1.79)
(0.85)
Less :- Suspension/Adju
48
Q2' 16
Q1' 16
Closing Balance
Ser ies1
Under Construction
46
1.73
1.96
1.96
Q2' 160
Q1' 16
0
Ser ies1
13
Summary Financials.
14
A)
1
B)
1
2
3
Consolidated Financials
Percentage of
Total Revenue
Rs. Crs.
1,865
132
Total Income(A1+A2)
1,997
Total Expenditure(B1+B2+B3)
Construction Cost
Staff cost
Other Expenditure
C)
EBITDA (D/A1)
D)
EBIDTA ( Margin)
Q1 FY16 (Reviewed)
Percentage of
Total Revenue
Rs. Crs.
2,231
114
Q2 FY15 (Reviewed)
Percentage of
Total Revenue
Rs. Crs.
2,013
122
Rs. Crs.
4,097
246
100%
2,346
100%
2,135
100%
4,343
100%
926
678
81
168
46
34
4
8
1,404
1,151
71
182
60
49
3
8
1,217
837
93
287
57
39
4
13
2,330
1,829
152
350
54
42
3
8
1,071
54
942
40
918
43
2,013
46
54%
40%
43%
46%
E)
F)
Financial charges
Depreciation
706
145
35
7
604
136
26
6
603
139
28
7
G)
H)
I)
J)
K)
L)
220
(15)
205
78
1
127
11
-1
10
4
0
6
201
(48)
154
31
0
122
9
-2
7
1
0
5
176
(38)
138
43
2
93
8
-2
6
2
0
4
422
(63)
359
109
1
249
10
-1
8
3
0
6
M)
N)
Minority Interest
Profit/(losss) of Associates
9
(4)
0
0
3
(4)
0
0
16
0
1
0
12
(8)
0
0
O)
Net Profit
109
131
122
1,310
281
253
30
6
The EBIDTA & PAT growth has been aided by certain Projects reaching the revenue recognition
threshold
15
Rs. Crs.
Unaudited
June-15
357
1,799
356
1,799
2,156
27,037
29,193
174
2,156
26,926
29,081
0
183
18,992
2,529
61
21,583
17,588
2,545
59
20,193
3,439
1,557
9,183
454
14,634
65,583
3,324
1,808
10,125
646
15,904
65,360
16
Contd..
DLF LIMITED
Consolidated Balance Sheet as at Sept 30, 2015
Unaudited
Sept-15
ASSETS
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Goodwill on consolidation
Non-current investments
Deferred tax assets (Net)
Long-term loans and advances
Other non-current assets
Current assets
Current investments
Inventories
Trade receivables
Cash and bank balances
Short-term loans and advances
Other current assets
Rs. Crs.
Unaudited
June-15
24,309
18,423
198
5,471
217
1,266
833
1,749
4,758
188
33,103
24,280
18,529
199
5,355
197
1,256
837
1,661
4,567
173
32,773
99
16,488
1,703
2,338
2,329
9,523
32,480
65,583
103
16,306
1,589
2,668
2,208
9,714
32,587
65,360
17
C.
Rs in crs
Period ended
30-Jun-15
359
154
281
136
(0)
(11)
63
3
0
(1)
1,310
(216)
1,787
(0)
1
48
2
0
(2)
604
(104)
839
(475)
113
(604)
46
867
(463)
293
(320)
161
510
(411)
202
(908)
(32)
(1,149)
(258)
112
(225)
(35)
(406)
1,028
0
(1,622)
(442)
(1,036)
(1,318)
439
0
(770)
(77)
(408)
(305)
2,432
1,113
(1,318)
2,432
2,127
(305)
Period ended
30-Sep-15
18
Liquidity Update
Net Debt Position
Q2 16
Actual
24451
-1751
2340
25040
380
24660
202
24862
-2342
Net Change
Q1 16
Actual
24012
-924
1363
24451
380
24071
202
24273
-2675
21598
22520
922 #
589
589
19
Thank You
20