Dlf Limited · NSE:DLF
Dlf — Q1 FY2022 Earnings Presentation
43 slides from Dlf's earnings presentation, July 2021
Slide 1: Q1FY22 Results Presentation
Q1FY22 Results Presentation The Camellias, 1 DLF 5, Gurgaon
Slide 2: Agenda
01 Overview DLF Limited: AGENDA 02 Business Update DCCDL: 03 Business Update 2
Slide 3: Overview: DLF Group
OVERVIEW : DLF Group Residential Offices Retail Other Business Business Apartments/Plotted/ CyberCities/Cyber Park/ Service & Facility IT SEZs/ Management/Hospitality Townships/Low-rise Commercial Parks 75 150+ 330 msf+ 100 msf+ Track Years of experience in Real estate Area developed Deliveries sinc
Slide 4: ESG Update
ESG Update Awarded Industry Mover DLF Limited included in 2021 status for strongest Y-o-Y edition of The Sustainability score improvement in Yearbook respective industry. Leadership position 100th Percentile DLF is the only real 93rd Percentile 18th out of 250 Environment reporting; estate company f
Slide 5: Safety | Planned Initiatives
Safety| Planned Initiatives DLF is undertaking numerous steps to ensure tenant safety and well-being remains at the forefront of our operations. Few of such initiatives (in varied stages of planning and/or implementation) have been discussed below. • MERV-14: The MERV-14 filters upgradation exercise
Slide 6: Business Update: DLF Limited
Concept image – Independent Floors Business Update: DLF Limited One Midtown, New Delhi Not an actual image Concept image – Independent Floors Not an actual image Not an actual image Not an actual image
Slide 7: Outlook
Outlook ❑ The industry continues to witness a structural positive shift in housing demand with fundamental demand drivers expected to remain in place Industry ❑ Demand remains strong despite temporary dislocation emanating from the pandemic ❑ Large, credible developers continue to witness increase i
Slide 8: Strategy
Strategy Remain committed and confident in delivering our business goals Development Business: Rental Business: Liquidity: Land Bank: ❑ Scaling up launches of ❑ Continued focus on ❑ Core land bank to be ❑ Strong Liquidity position: New Products growth through better developed for sustainable Maintai
Slide 9: 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 10: Development Update: New Products
Development Update New Products; key tenets to the next growth cycle ❑ Scaling Up: ✓ ~ 35 msf of New Products planned in medium term ✓ Established locations with infrastructure in place ❑ Diversified Offerings: ✓ Quality Products across multiple categories catering different target segments & multip
Slide 11: Identified Pipeline of New Products – Launch Calendar
Development Update Identified Pipeline of New Products – Launch Calendar of 35 msf ~ Sales Area in msf Project Potential Beyond Project H2 FY21 H1 FY22 H2 FY 22 FY22-23 FY23-24 Size ( ~ in Rs FY24 (~ in msf) crore) DLF - GIC 12,000 - Residential JV, 8 - - 2.1 - - 6.0 15,000 Central Delhi DLF – Hines
Slide 12: Development Update
Development Update NOIDA Data Center DLF City Floors, Gurgaon Atrium Place (Hines JV), Gurgaon 12
Slide 13: Highlights – Q1FY22
Highlights – Q1FY22 New Sales exhibited sustained momentum during the quarter Net Sales Possession Operating Booking Letters Issued Cashflow Rs 1,014 crore 344 units 0.9 msf Rs 141 crore Pipeline Launch Net Debt New Products New Products Independent Floors across Gurugram; 35 msf Rs 4,745 crore Cons
Slide 14: Sales Bookings
Sales Bookings : Sustained momentum during the quarter despite Covid resurgence Y-o-Y comparison Q-o-Q comparison ₹ 1,014 cr ₹ 1,058 cr 4% ₹ 1,014 cr 567% ₹ 152 cr Q1FY21 Q1FY22 Q4FY21 Q1FY22 Completed Inventory: New Products: ❖ DLF5 : Rs 352 crore; Consistent double-digit sales of ❖ Rs 542 crore Ca
Slide 15: Q1FY22 Results
Q1FY22 Results Strong Financial Performance: PAT at Rs 339 crore; Surplus cash generation of Rs 141 crore ❑ Revenue stood at Rs 1,243 crore, reflecting a Y-o-Y increase of 92% ❑ EBITDA at Rs 498 crore, reflecting a Y-o-Y growth of 400%. EBITDA margins improved to 40% due to product mix ❑ PAT at Rs 3
Slide 16: Consolidated Profit & Loss Q1FY22
Consolidated Profit & Loss Q1FY22 PAT at Rs 339 crore vs Loss of Rs 72 crore LY % Change % Change Particular Q1FY22 Q4FY21 Q1FY22 - Vs Q1FY21 Q1FY22 - Vs Q4FY21 Q1FY21 Income a) Revenue from operations 1,140 1,713 (33%) 549 108% b) Other income 103 194 (47%) 98 5% Total income 1,243 1,907 (35%) 647
Slide 17: Finance Cost
Finance cost Focus continues on reduction in interest cost 9.7% 8.4% 8.2% FY20 exit FY21 exit Q1FY22 ❑ Targeting further reduction of 20-30 bps ❑ Latest funding at ~ 8% 17
Slide 18: Residual EBITDA as on 30.06.2021
Residual EBITDA as on 30.06.2021 EBIDTA to be recognized from sales EBIDTA to be recognized from Inventory Project done till 30th June-21 as on 30th June-21 Camellias 2,160 2,435 DLF 5 135 5 New Gurgaon 160 75 National Devco 580 495 New Products (launched from Q3FY21 Onwards) 630 30 TOTAL 3,664 3,04
Slide 19: Completed Inventory / New Products
Completed Inventory / New Products Q1FY22 Till 30th June-21 Receivables/Completed Inventory Revenue Balance Total Sales Sales Sales Sales Balance Total Area recognized till Inventory Value Project Booking Booking Booking Booking Receivable (msf) date (in Rs (in Rs (in msf) (in Rs crore) (in msf) (in
Slide 20: Consolidated Cash Flow – Q1FY22
Consolidated Cash Flow – Q1FY22 Consistent surplus cash generation over last 5 quarters despite Covid impact Particulars Q1FY22 Q4FY21 Q1FY21 Inflow •Collection from Sales 619 807 315 •Rental Inflow (DLF Limited) 12 64 50 Sub-Total Inflow 631 870 365 Outflow •Construction (Net) 109 394 72 •Governmen
Slide 21: Consolidated Balance Sheet Abstract
Consolidated Balance Sheet Abstract Particulars As on 30.06.2021 As on 31.03.2021 Non-Current Assets 28,302 28,217 Current Assets 25,820 26,593 TOTAL ASSETS 54,122 54,810 Equity 35,703 35,364 Non-Current Liabilities 6,437 6,661 Current Liabilities 11,982 12,784 TOTAL LIABILITIES 54,122 54,810 21
Slide 22: Debt Update – Q1FY22
Debt Update – Q1FY22 Net Debt reduction of Rs 141 crore achieved during the Quarter Net Debt Sources ₹ 1,000 cr ₹ 3,665 cr Particulars Q1FY22 Q4FY21 Q1FY21 ₹ 135 cr Gross opening debt 6,510 6,420 7,774 ₹ 1,233 cr Less : Debt repaid during quarter (477) (859) (278) Banks HDFC/Others ECB NCD Repayment
Slide 23: Debt Management
Debt Management Committed to further debt reduction in medium term Particulars Amount (in Rs crore) Net Debt as on 30.06.2021 (4,745) Receivables (including New Products) 3,361 Construction Payables (including New Products & capex) (1,075) Other Recoveries/Refunds 500 Residual Net Debt (1,959) Compl
Slide 24: Rental Portfolio Snapshot (DLF Limited) – Q1FY22
Rental Portfolio Snapshot (DLF Limited) – Q1FY22 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 0.2 0.1 0.0 74% 358 71 1,038 DLF5 0.5 0.5 0.0 100% 48 32 804 IT Sez, Ko
Slide 25: DCCDL Business Update
DCCDL Business Update DLF Cyber Park, Gurgaon 25
Slide 26: Outlook & Key Updates
Outlook & Key Updates Collections remain steady; Long term outlook remains positive • Collections at ~ 99% during the quarter; vacancies in line with expectation • Tenants deferring new leasing decisions; however, pick up in enquiries being witnessed • Temporary dislocation; expected to impact near
Slide 27: Portfolio Snapshot – Q1FY22
Portfolio Snapshot – Q1FY22 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) (in Rs crore) Cyber City 10.2 8.4 1.7 83 111 63 15,871 Cyber Sez 2.9 2.6 0.3 91 86 61 4,066 Cyber Park 2.6 2.3 0.2 92 119 10
Slide 28: Historical Performance: Offices
Historical Performance : Offices Particulars Q1FY22 FY21 FY20 FY19 Area(msf) - Completed 30.3 30.3 26.4 26.4 - Under 4.9 3.9 6.6 3.3 Construction Total area 35.2 34.2 33.1 29.7 Occupancy % - Completed 86% 88% 95% 94% New Leases (msf) 0.3 1.5 1.5 2.1 Re Leasing (msf)* 0.6 1.9 1.3 1.9 Re Leasing MTM (
Slide 29: Re-leasing Potential – Term Expiries
Re-leasing Potential – Term Expiries Cyber City, Gurugram* Cyber City, Chennai Total Annualized incremental Total Annualized incremental revenue1 ~ INR 51 crore revenue ~ INR 34 crore Rates in INR psf/month Rates in INR psf/month 121 126 130 76 80 84 92 96 100 61 62 59 FY 22 FY 23 FY 24 FY 22 FY 23
Slide 30: Mark-to-Market Potential
Mark-to-Market Potential Cyber City, Gurugram* Cyber City, Chennai 11% 8% 116 76 105 70 Weighted Avg. Rental Market Rental Weighted Avg. Rental Market Rental Note: FY 22 will be impacted due to COVID 19 Market rental means weighted average headline rental for new leases entered till June ’21 * Cyber
Slide 31: Office Portfolio - Tenant Mix
Office Portfolio - Tenant Mix Tenant % of Revenue Cognizant 5% IBM 3% American Express 3% ▪ Well diversified & balanced portfolio EY 3% ▪ Tenants Profile: Predominantly IT/ITES, KPMG 3% BFSI companies, engineering services, Concentrix 2% etc. BA Continuum 2% ▪ Lower concentration risk as Top 10 TCS
Slide 32: Result Highlights – Q1FY22
Result Highlights – Q1FY22 Retail segment re-impacted; Offices exhibiting resiliency Rental Revenue Operating Cashflow Net Debt Rs 771 crore Rs 302 crore Rs 19,072 crore Operational Rating Gross Leasing Portfolio ICRA AA(-) 34.2 msf 1msf (Stable) Note: 1. Net Debt = Gross Debt (IGAAP) less cash & ca
Slide 33: Development Update
Development Update New Product development on track ~ Project Project Current Status Latest Update Size ▪ Phase-I (~1.5 msf) Downtown, ▪ Block 2 & 3 under construction 11 msf ▪ Structure complete; Gurugram ▪ Pre-leasing: ~0.5 msf Façade/MEP work underway Downtown, ▪ Phase I (~ 3 msf) under 6.5 msf ▪
Slide 34: Development Update: Block 12, Chennai
Development Update Block 12, DLF Cyber City, Chennai 34
Slide 35: Development Update
Development Update DLF Downtown, Gurugram DLF Downtown, Chennai 35
Slide 36: DCCDL: Q1FY22 Results
DCCDL : Q1FY22 Results Sustained business performance despite Retail segment impacted during the quarter PAT at Rs 202 crore, Y-o-Y growth of 26%; Cashflow generation of Rs 302 crore ❑ Revenue at Rs 1,041 crore, Y-o-Y growth of 12% ✓ Offices rental growth of 12% Y-o-Y driven by Cyber Park, Chennai B
Slide 37: DCCDL Consolidated Financial Summary - Q1FY22
DCCDL Consolidated Financial Summary - Q1FY22 PAT at Rs 202 crore, Y-o-Y growth of 26% % change % change Particulars Q1FY22 Q4FY21 Q1FY21 Q-o-Q Y-o-Y Rental Income Office 729 713 2% 651 12% Retail 42 125 (67%) 5 707% Service & Other Operating Income 230 276 (17%) 210 10% Other Income 39 180 (78%) 63
Slide 38: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Cash surplus of Rs 112 crore generated during the quarter Particulars Q1FY22 Q4FY21 Operating Cash flow before Interest & tax 687 741 Interest Expense (361) (430) Interest Income 15 18 Tax (net)** (39) (26) Operating Cash flow after Interest & tax 302 303 Capex
Slide 39: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 30.06.2021 As on 31.03.2021 Non-Current Assets 29,047 29,018 Current Assets 1,807 1,472 Total Assets 30,854 30,490 Equity 6,132 5,930 Non-current Liabilities 19,245 18,837 Current Liabilities 5,477 5,723 Total Liabilities 30,854 30,490 39
Slide 40: DCCDL Consolidated - Debt Update
DCCDL Consolidated - Debt Update Net Debt Sources Particulars Q1FY22 Q4FY21 Banks, ₹ 11,921 cr Gross opening debt 20,267 19,735 HDFC/Others, NCD, ₹ 6,816 cr Less : Debt repaid during quarter (576) (2,624) ₹ 1,654 cr Repayment Schedule Add : New Borrowing during Qtr. 699 3,155 > 3 Yr, ₹ 15,945 cr Les
Slide 41: DCCDL Consolidated – Interest Rates
DCCDL Consolidated – Interest rates Focus continues on reduction in interest cost 8.90% 7.45% 7.42% FY20 exit FY21 exit Q1FY22 ▪ Latest funding at 7-7.2% ▪ Debt levels to hold in the short term; expected significant reduction post REIT listing 41
Slide 42: 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 43: Thank You
Club House, Panchkula THANK YOU 43