Dlf Limited · NSE:DLF
Dlf — Q3 FY2023 Earnings Presentation
45 slides from Dlf's earnings presentation, January 2023
Slide 1: Q3FY23 Results Presentation
Q3FY23 Results Presentation The Grove, DLF 5, Gurugram Artist’s impression; not an actual image
Slide 2: Agenda
AGENDA DLF LIMITED: DCCDL: Overview BUSINESS BUSINESS UPDATE UPDATE 01 02 03 2
Slide 3: Overview: DLF Group
OVERVIEW : DLF Group Residential Offices Retail Other Business Business Apartments/Plotted/ Cyber Cities/Cyber Parks/ Service & Facility IT SEZs/ Management/Hospitality Townships/Low-rise Commercial Parks 75 150+ 100 msf+ Track Real estate 330 msf+ Years of experience in Area developed Deliveries si
Slide 4: Strategy
Strategy Remain committed and confident in delivering our business goals Development Business: Rental Business: Strengthening Balance Sheet: Organization: ❑ Continue to scale up ❑ Continued focus on ❑ Building organizational ❑ Continued focus on healthy New Product offerings growth through better ca
Slide 5: Growth Drivers
Growth Drivers Uniquely positioned to deliver Sustainable Growth 5 Organization ❑ Competitive advantage Low- cost, fully paid-up land bank Capabilities at established locations; 4 Potential sufficient to drive growth without additional Optimal Capital capital outlay Inorganic ❑ Revamped leadership,
Slide 6: Development Potential
Development Potential Strategically located land bank at low carrying cost; will enable steady & sustainable growth Location Development Potential1 (in msf) Gurgaon 104 DLF 5/DLF City 24 New Gurgaon 81 Delhi Metropolitan Region 13 Chennai 12 Hyderabad 3 Chandigarh Tri-City Region 16 Kolkata 2 Mahara
Slide 7: New Sale bookings: Rs 2,507 crore in the quarter; Rs 6,599 crore YTD
New Sale bookings: Rs 2,507 crore in the quarter; Rs 6,599 crore YTD Strong quarterly sales; sustained demand momentum Sales booking trend Q-o-Q Growth: 22% Y-o-Y Growth: 45% ₹ 6,599 cr ₹ 2,507 cr ₹ 2,052 cr ₹ 4,544 cr Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY23 Highlights: Area sold ~ 1.5 msf ; 89% + sale b
Slide 8: Healthy Product Mix: ~89% New Sales booking from New products
Healthy Product Mix: ~ 89% New Sales booking from New products Well diversified across geographies & segments Segment Mix Geographic Mix Premium 22% Panchkula Luxury 22% 66% DLF 5, Value Gurugram 5% 70% DLF City/ROG Super- 7% Luxury Chennai 7% 0% National Devco 1% ❑ Diversified offerings of thoughtf
Slide 9: The Grove: A low-rise luxury offering in DLF 5, Gurugram
The Grove : A low-rise luxury offering in DLF 5, Gurugram Quality offering; leading to fastest monetization across luxury segment ❑ Project Size: ~ 0.85 msf, ❑ 292 units ❑ Sales potential: ~ Rs 1,880 crore ❑ Completely Sold out ❑ Avg. realization: Rs 22,000 psf
Slide 10: The Valley Gardens, Panchkula – Low rise development
The Valley Gardens, Panchkula – Low rise development Significant monetization of released inventory; witnessing fast turnaround ❑ Project Size: spread across 34 acres; ~ 2.2 msf ❑ Launched Area: ~ 2.2 msf; ❑ Sales potential of Rs 1,900 crore ❑ Released: Phase I & II (1.4 msf) ❑ Sold (as on 31st Dec
Slide 11: Launch Calendar of 35 msf; Sales Potential ~Rs 47,000 crore
Launch Calendar of 35 msf; Sales Potential ~ Rs 47,000 crore Launches for current fiscal on track Area in msf Project Sales Till FY22 Project Size Potential 9MFY22-23 Q4FY22-23 FY23-24 Beyond FY24 18M (~ in msf) ( ~ in Rs crore) DLF - GIC Residential JV, 8 17,500 2.1 - 2.0 4.0 Central Delhi DLF – Hi
Slide 12: Development Update
Development Update Product potential (near term) ~Rs 15,140 crore Planned products Available Inventory (Q4FY23) Rs 7,140 crore Rs 8,000 crore Completed Inventory Launched Products ❑ Planned residential developments across (Till 31st Dec-22) (Till 31st Dec-22) Gurugram; to be launched subject to ~ Rs
Slide 13: Completed Inventory & Receivable Status
Completed Inventory & Receivable Status Q3FY23 Till 31st December-22 Receivables/Completed Inventory Total Revenue Sales Sales Sales Sales Balance Inventory Total Area recognized till Area Project Booking Booking Booking Booking Receivable Value (msf) date (in msf) (in msf) (in Rs crore) (in msf) (i
Slide 14: Residual Gross Margin as on 31.12.2022
Residual Gross Margin as on 31.12.2022 New Products to lead value accretion Gross Margin to be Gross Margin Gross Margin to be Project recognized from sales recognized from Inventory Movement done till 31st as on 31st December-2022 December-2022 Completed Inventory ₹ 8,645 cr ₹ 8,122 cr Camellias 1,
Slide 15: DLF Limited Business Update
DLF Limited Business Update Aerial view of the Clubhouse at The Camellias, DLF 5, Gurugram
Slide 16: Outlook
Outlook ❑ CY22 registered significant growth in housing demand driven by consumer desire towards home ownership, larger homes across established locations and better affordability ❑ Larger homes offering better amenities expected to be the preferred choice for consumers. Consolidation in favor of la
Slide 17: Highlights – Q3FY23
Highlights – Q3FY23 Significant ramp up in New Sales bookings; sustained business momentum New Sales Operating Booking Collections Cashflow Rs 2,507 crore Rs 1,398 crore Rs 633 crore Significant ramp up in Record quarterly collections Consistent Cash generation New sales across residential segment f
Slide 18: Q3FY23 Results
Q3FY23 Results Revenue at Rs 1,560 crore; PAT at Rs 515 crore Y-o-Y growth of 35% ❑ Revenue stood at Rs 1,560 crore; reflecting a Y-o-Y drop of 8% ❑ Gross margins improved to 59% vs 53% LY ❑ EBITDA at Rs 542 crore; Y-o-Y drop due to lower other income & higher expenses(34%) driven by business scale
Slide 19: Consolidated Profit & Loss Q3FY23
Consolidated Profit & Loss Q3FY23 Revenue at Rs 1,560 crore; PAT at Rs 515 crore Y-o-Y growth of 35% % Change % Change Particular Q3FY23 Q2FY23 Q3FY23 - Vs Q3FY22 Q3FY23 - Vs Q2FY23 Q3FY22 Income Revenue from operations 1,495 1,302 15% 1,550 (4%) Cost of Sales 617 523 18% 730 (15%) Gross Margin 878
Slide 20: Consolidated Profit & Loss 9MFY23
Consolidated Profit & Loss 9MFY23 Revenue at Rs 4,436 crore; PAT at Rs 1,472 crore Y-o-Y growth of 34% % Change 9MFY23 - Particular 9MFY23 9MFY22 Vs 9MFY22 Income Revenue from operations 4,239 4,170 2% Cost of Sales 1,812 1,994 (9%) Gross Margin 2,426 2,176 12% Gross Margin % 57% 52% Other income 19
Slide 21: Consolidated Cash Flow
Consolidated Cash Flow Consistent surplus cash generation from Operations Particulars Q1FY23 Q2FY23 Q3FY23 9MFY23 Inflow •Collection from Sales 991 1,152 1,307 3,450 • Rental Inflow 81 100 91 272 Sub-Total Inflow 1,072 1,252 1,398 3,722 Outflow •Construction (Net) 197 298 298 793 •Govt. Approval fee
Slide 22: Debt Update – Q3FY23
Debt Update – Q3FY23 Net Debt reduction of Rs 51 crore from operating cash flows Sources Particulars Q1FY23 Q2FY23 Q3FY23 Banks, ₹ 3,277 cr, Gross opening debt 3,900 3,728 3,608 85% Less : Debt repaid during quarter (172) (120) (68) Diversified sources of funding HDFC/Others , ₹ 64 cr, 2% Add : New
Slide 23: Debt Management
Debt Management Committed to further debt reduction in medium term Particulars Amount (in Rs crore) Net Debt as on 31.12.2022 (2,091) Receivables (including New Products) 6,792 Construction Payables (including New Products) (3,099) Capex (Rental assets ~ 2msf) (823) Surplus Cash position 780 Complet
Slide 24: Consolidated Balance Sheet Abstract
Consolidated Balance Sheet Abstract Particulars As on 31.12.2022 As on 31.03.2022 Non-Current Assets 28,554 28,413 Current Assets 24,515 24,091 TOTAL ASSETS 53,069 52,503 Equity 37,105 36,382 Non-Current Liabilities 5,638 5,718 Current Liabilities 10,326 10,404 TOTAL LIABILITIES 53,069 52,503 24
Slide 25: Development Update – ONE Midtown, New Delhi
Development Update ONE Midtown, New Delhi 25
Slide 26: Development Update – DLF City Floors, Gurugram
Development Update – DLF City Floors, Gurugram Artist’s impression; Not an actual image Actual Status Actual Status City Floors, DLF Phase 3 26
Slide 27: Development Update – Garden City Floors, New Gurgaon
Development Update – Garden City Floors, New Gurgaon Artist’s impression; Not an actual image Actual Status Garden City Floors, New Gurgaon 27
Slide 28: Development Update
Development Update DLF Tech Park, NOIDA Amex Campus ,Sector -74, New Gurgaon Actual Status Artist’s impression; Not an actual image Artist’s impression; Not an actual image DLF Tech Park, NOIDA Actual Status Amex Campus, Actual Status Sector -74,New Gurgaon 28
Slide 29: Rental Portfolio Snapshot (DLF Limited) – Q3FY23
Rental Portfolio Snapshot (DLF Limited) – Q3FY23 Weighted Leasable Leased Vacant Area Average Rental WALE GAV1 Area Area Building % Leased Area rate (in msf) (in msf) (in msf) (in Rs psf) (months) (in Rs crore) DLF Center, Delhi 0.17 0.14 0.03 82% 326 64 1,034 DLF5 0.6 0.6 0.0 100% 46 13 801 IT Sez,
Slide 30: DCCDL Business Update
DCCDL Business Update 30 DLF Downtown, Gurugram
Slide 31: Outlook
Outlook Office Occupancy exhibiting steady improvement; Retail momentum continues ❑ Global corporates remain positive towards India, attracted by its competitive wage and occupancy costs ❑ We expect an increased emphasis on workplace quality and experience to drive engagement. Leading Macro develope
Slide 32: Maintaining Leadership position in Safety/Sustainability
Maintaining Leadership position in Safety/Sustainability LEED for Cities & Communities in Platinum Category” from USGBC; first developer in the world to achieve this LEED Zero USGBC’S LEED Zero Water Certification to DCCDL portfolio of ~ 40 msf for net zero (Green Business portable water usage. 1st
Slide 33: Portfolio Snapshot – Q3FY23
Portfolio Snapshot – Q3FY23 Office occupancy exhibiting gradual recovery; Sez space take-up remains slow; Retail continues to operate at healthy levels Weighted Average Leasable Area Leased Area Vacant Area % Leased WALE GAV1 Building Rental rate Area (in msf) (in msf) (in msf) (in Rs psf) (months)
Slide 34: Portfolio - Tenant Mix
Portfolio - Tenant Mix Well diversified & balanced portfolio with lower concentration risk Offices: Tenant Mix Retail Tenant Mix Q3FY23 (based on revenue) Q3FY23 (based on leased area) 5% 2% 6% Top 10 Tenants % Top 10 Tenants % Cognizant 5% Cognizant 6% 8% American Express 3% IBM 4% 45% IBM 3% Conce
Slide 35: Result Highlights – Q3FY23
Result Highlights – Q3FY23 Rental income grew by 15% Y-o-Y; driven by double digit growth across portfolio Operational Rental Revenue Gross Leasing Portfolio Rs 1,003 crore Operational portfolio: Highest quarterly 1.5 msf rental revenue 39.6 msf Net Debt Rating Sustainability DLF Cyber City, Gurugra
Slide 36: Development Update
Development Update New Product development being ramped up & remains on track ~ Project Project Current Status Latest Update Size ▪ Phase-II (~2 msf): construction commenced Downtown, ▪ Pre-leasing(Phase-II) of 0.7 ~12 msf ▪ Phase-III( Mall of India): planning at advanced Gurugram msf stages Downtow
Slide 37: Development Update
Development Update DLF Downtown, Chennai Artist’s impression; Not an actual image DLF Downtown (Block-4), Gurugram Actual Status Actual Status 37
Slide 38: DCCDL: Q3FY23 Results
DCCDL : Q3FY23 Results Revenue increased by 16% Y-o-Y due to higher rental revenues; PAT at Rs 358 crore; 27% growth ❑ Revenue at Rs 1,363 crore, Y-o-Y increase of 16% ✓ Office rentals witnessing steady growth 14% Y-o-Y; ✓ Retail revenues grew by 18% driven by sustained momentum ❑ EBITDA at Rs 1,061
Slide 39: DCCDL Consolidated Financial Summary - Q3FY23
DCCDL Consolidated Financial Summary - Q3FY23 Revenue up by 16% & PAT at Rs 358 crore; 27% Y-o-Y growth % change % change Particulars Q3FY23 Q2FY23 Q3FY22 Q-o-Q Y-o-Y Rental Income Office 813 801 2% 712 14% Retail 190 184 3% 160 18% Service & Other Operating Income 323 351 (8%) 265 22% Other Income
Slide 40: DCCDL Consolidated Financial Summary - 9MFY23
DCCDL Consolidated Financial Summary - 9MFY23 Revenue up by 20% & PAT at Rs 1,035 crore; 45% Y-o-Y growth % change Particulars 9MFY23 9MFY22 Y-o-Y Rental Income Office 2,374 2,142 11% Retail 541 322 68% Service & Other Operating Income 973 762 28% Other Income 104 114 (9%) Total Revenue 3,991 3,340
Slide 41: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Particulars Q1FY23 Q2FY23 Q3FY23 Operating Cash flow before Interest & tax 906 1,044 1,122 Interest Expense (Net) (294) (363) (392) Tax (net)1 (99) (113) (65) Operating Cash flow after Interest & tax 513 568 664 Capex (278) (287) (354) Net Surplus/Deficit – Afte
Slide 42: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 31.12.2022 As on 31.03.2022 Non-Current Assets 29,282 29,398 Current Assets 2,349 1,353 Total Assets 31,631 30,751 Equity 6,715 6,431 Non-current Liabilities 21,042 20,529 Current Liabilities 3,874 3,791 Total Liabilities 31,631 30,751 42
Slide 43: Debt Update – Q3FY23
Debt Update – Q3FY23 Net Debt Sources Particulars Q1FY23 Q2FY23 Q3FY23 Banks, ₹ 9,655 cr, HDFC/Others, Gross opening debt 20,189 20,137 20,847 47% ₹ 4,206 cr, 21% Diversified Less : Debt repaid during quarter (390) (1,290) (1,511) sources of funding Add : New Borrowing during Qtr. 338 2,000 1,150 NC
Slide 44: Disclaimer
Disclaimer This presentation contains certain forward-looking statement concerning DLF’s future business prospects and business profitability, which are subject to a number of risks and uncertainties & the actual results could materially differ from those in such forward-looking statements. The risk
Slide 45: One Midtown, New Delhi
One Midtown, New Delhi Artist’s impression; not an actual image