Dlf Limited · NSE:DLF
Dlf — Q3 FY2011 Earnings Presentation
25 slides from Dlf's earnings presentation, Jan 31, 2011
Slide 1: Q3 FY11 Analyst Presentation
Q3 FY11 Analyst Presentation 31st Jan 2011 1
Slide 2: Safe Harbour
SAFE HARBOUR This presentation contains certain forward looking statements concerning DLF’s 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
Slide 3: Industry update Q3 FY11
Industry update ….Q3 FY 11 Outlook on the economy turns cautious as the GDP growth is accompanied with high inflation Supply side and infrastructural bottlenecks continue to pla y spoil-sport to RBI’s efforts to tame inflation Policy actions will temper GDP growth going forward Projects cont
Slide 4: Industry update Q3 FY11 (Cont.)
Industry update ….Q3 FY 11…(Cont..) Industry Outlook - Q4 FY 11 Inflation management / growth expectation to lead to a tighter liquidity environment Central Bank continuing to harden interest rates could have a short term dampening impact on the sector Rising interest rate scenario could res
Slide 5: Summary Company Performance – Q3 & YTD FY11
Summary Company Performance – Q3 & YTD FY 11 Base strategies on all business parameters of the Company remain on track. Rent Co. Office – leasing momentum continuing though market rentals remain static 1.62 msf leased in the quarter versus 1.56 in Q2 FY 11. For YTD leasing was at 4.2 msf R
Slide 6: Summary Company Performance – Q3 & YTD FY11 (Cont.)
Summary Company Performance – Q3 & YTD FY 11…(Cont..) Divestments Recovery actions progressing as per plan – Rs. 403 Crs in the quarter Total achieved to date is Rs 2,900 Crores versus Rs 4,500 Crores (ex-wind power) Divestment program remains on track Debt Reduction Timing impact as deb
Slide 7: Indicative New Launches
Indicative New Launches > 8 msf of new launches planned Actual sales booking in Q4 FY 11 shall be dependent on timing of launch and market response there-off S.No Product Location ~ Area 1 Residential Plotted Township / Near Chandigarh, 5 msf Plotted Development Gurgaon 2 Luxury Housing Kochi 0.
Slide 8: Profit & Loss Summary – Q3 FY11
Profit & Loss Summary – Q3 FY11 Q3 FY 11 vs Q2 FY 11 Sales(incl Other Income) at Rs 2594 Cr, compared to Rs 2520 Cr. Net profit at Rs 466 Cr , as against Rs 418 Cr EBIDTA margins at 50% versus 42% ; YTD Tax Rate at 25% With scale up of execution in select projects across the country, minorit
Slide 9: Consolidated P&L – Q3 FY11
Consolidated P&L – Q3 FY11 Q3 FY11 (review ed) Q3 FY10 (reviewed) Q2 FY11 (review ed) Nine months ended FY11 Percentage Perce ntage of Percentage of Pe rc entage of Sl.No. Consolidated Financ ials Rs . Crs. Rs. Crs. Rs. Crs. Rs. Crs. of Total Total Re venue Tota l Revenue Total Reve nue Revenue A) 1
Slide 10: Consolidated Balance Sheet – Q3 FY11
Consolidated Balance Sheet – Q3 FY11 As a t 31-De c-10 31-De c-09 30-Se p-10 SOURCES OF FUNDS Sha re ho lde rs' fu nds Capit al 2150 1735 2423 Res erves and s urplus 24406 23764 24233 26556 25500 26656 Minorit y Int eres ts 642 629 602 Loa n fu nds Sec ured loans 21947 14684 20810 Uns ecured loans 1
Slide 11: Consolidated Cash Flow Statement – Q3 FY11
Consolidated Cash Flow Statement – Q3 FY11 Rs. In crores For Perio d ended Particulars Q3 31 -Dec-10 30-Sep-10 30 -J un-1 0 A. Cash flow from operating activities: Net profit before tax 704 1,769 1,065 573 Adjustments for: Depreciation 161 465 304 150 Loss/(profit) o n sale of fixed assets, net (1 )
Slide 12: Cashflow Statement Summary
Cashflow Statement Summary Net Investable surplus during Q3 FY 11 is in excess of Rs 600 Crs Full impact of plotted Sales ( Alameda ) cash flow will be seen in Q4 FY 11 Launches planned & pick up in the execution of projects in Q4 FY11 to provide impetus to cash flows Cash flows utilization
Slide 13: Debt Position – Q3 FY11
Debt Position – Q3 FY11 All figures in Rs. Crs Debt Pref Cap. Consol. Gross Opening Bal ( as on 1st Oct-10 ) 23239 474 23,713 Less / Add : Repaid during Q3-11 (1,839) (1,839) : New loan availed 2,046 2,046 : Repayment of Pref. Shares ( incl. premium ) (449) (449) : Debt Increase due to Consolidation
Slide 14: Quality of Earnings
Quality of Earnings Annualized EBIDTA Particulars Quarterly Rs Crs. (Rs Crs) Dev Co ~ 3100 Profit after ta x 466 Add. Minority 34 Add. depreciation 161 Rent Co ~ 1650 Add. tax 203 Total ~ 4700 Add Interest 428 Robust cash flows from both the rental & development businesses EBIDTA 1292 Sustainabl
Slide 15: Debt Coverage
Debt Coverage (Amt in Rs Crs) Total Net Debt (as on 31st Dec 2010) 20,700 Less : earmarked for divestment purposes 1,800 Less : non core / others 3,200 Debt related to core business (Rent Co. & Dev. Co.) 15,700 Annualized Cash Flow/ ~ Allocated EBIDTA Asset Cover Debt (Rs Crs) (x) (Rs Crs) Ren
Slide 16: Debt Profile
Debt Profile Debt Repayment Schedule Q4 FY 11 FY12 Amt ( in Rs Cr) 210 2700 De-leveraging to continue from Operational Cash Flows & Non Core Asset Divestments On target with divestment plans of non core assets / businesses over the medium term Focus on launches in Q4 11 to substantially impr
Slide 17: Business Operations
Business Operations 17
Slide 18: Ongoing Execution
Ongoing Execution Area in msf Region Q3 11 Q2 11 Q3 10 Gurgaon 22 22 21 Super Metro 7 7 3 Rest of India 11 12 9 For Rent Co 16 16 17 56 57 51 Added 0.9 msf of office space for construction Handed over 1 msf of office space 18
Slide 19: Dev Co. – Launch of Alameda
Dev Co. Launch of “Alameda” in Q3 FY11 First plotted launch by DLF in over a decade Elite plotted development spread across 100 acres in Sector 73, Gurgaon Approx. 2 msf of saleable area comprising plots largely sized between 500 to 700 sq yds Well planned layout with gated perimeter, extens
Slide 20: Dev Co. Q3 FY11
Dev Co. Q3 FY11 Total Mn sqft Particulars Q3-11 Q3- 10 Q2 - 11 Sales Status Opening Balance 42.32 32.82 40.24 Add:- Sale Booked During the Qty 2.48 3.12 2.08 Less : Handed over / Suspended 0.00 0.73 0.00 Closing Balance 44.80 35.21 42.32 Under Construction Opening Balance 40.69 31.56 38.32 New Launc
Slide 21: Rent Co.
Rent Co. Total Annuities income including office & retail rentals, utilities / power, facilities and management, etc stood at Rs 1150 Crores for YTD FY 11, annualised run rate of Rs 1650 Crores ( approx.) Offices Total Lease portfolio of 22.39 msf Q3 11 – Rs. 290 Crs & YTD 2011 – Rs 814 Crs of r
Slide 22: Rent Co. Q3 FY11
Rent Co. Q3 FY11 Total Mn sqft Particulars Q3-11 Q3- 10 Q2 - 11 Lease Status Opening Balance 22.06 16.51 20.38 Add:- Lease Booked During the Qty 1.97 0.42 2.01 Less :- Cancellation / Adjustment (0.29) 0.00 (0.33) Closing Balance 23.73 16.93 22.06 Under Construction Opening Balance 15.80 17.13 16.27
Slide 23: Our Land Resources
Our Land Resources Area ( msf ) Other Land Hotel Land G.Total Gross Area – as on 1st Oct10 395 11 406 Less : Projects Disposed off ( Net ) 7 0 7 Net Land Bank - as on 31st Dec-10 388 11 399 Break up of 399 msf of Land Resources available Particulars Dev. Co Rent. Co Hotel Total Break up 302 86 11 39
Slide 24: Going Forward
Going Forward Key business parameters unchanged with actions progressing as planned Focus on debt reduction to be visible gong forward with new launches, acceleration of execution, culmination of investments in strategic land buys & continuing non-core asset divestments Q4 FY 11 to witness a s
Slide 25: Thank You
Thank You.... A