Slide 1: Q2FY22 Results Presentation
Q2FY22 Results Presentation The Camellias Club, DLF 5, Gurugram 1
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/ 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: ESG Update – DLF Limited
ESG Update – DLF Limited Ranked # 1 in India amongst listed RE (OfficeDevelopment); Awarded Overall Regional Sector Leader / 5 Star Rating Overall Regional Development Benchmark* Sector Leader (Office-Development) India Office 1 st Out of 7 Standing Investments Benchmark(Operational Portfolio) GRE
Slide 5: ESG Update – DCCDL Limited
ESG Update – DCCDL Limited Ranked # 2 in Asia amongst unlisted RE (OfficeDevelopment); Awarded Regional Sector Leader / 5 Star Rating Regional Sector Leader Development Benchmark (Office-Development) Asia Office Non-listed 2nd Out of 7 Standing Investments Benchmark (Operational Portfolio) Perfor
Slide 6: Outlook
Outlook ❑ Positive demand momentum across Segments and Geographies; well supported by the fundamental demand drivers ❑ Housing sales and consumer sentiments exhibiting significant improvement; inventory Industry levels inching downwards despite new supply ❑ Consolidation in favor of large, credible
Slide 7: Business Update DLF Limited
Business Update DLF Limited Tower Porte Cochere at The Camellias, DLF 5, Gurugram
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
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: Development Update: Launch Calendar of 35 msf
Development Update Identified Pipeline of New Products – Launch Calendar of 35 msf Area in msf ~ Project Sales Project Size Potential Till H1 FY22 H2 FY 22 FY22-23 FY23-24 Beyond FY24 (~ in msf) ( ~ in Rs crore) DLF - GIC 12,000 - Residential JV, 8 - 2.1 - - 6.0 15,000 Central Delhi DLF – Hines/ADIA
Slide 12: Development Update
Development Update DLF City Floors, Gurugram Artist’s impression; Not an actual image Actual Status 12
Slide 13: 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 13
Slide 14: Highlights – Q2FY22
Highlights – Q2FY22 Strong business performance during the Quarter Net Sales Surplus Booking Collections Cashflow Rs 1,512 crore Rs 1,448 crore Rs 759 crore Record sales in Super Highest collections in Highest cashflow in Luxury segment last 5 years last 5 years ESG Rating Credit Rating Net Debt Rs
Slide 15: Sales Bookings
Sales Bookings : Super-Luxury segment outperforms; Sustained momentum for New Products Y-o-Y comparison Q-o-Q comparison ₹ 1,512 cr ₹ 1,512 cr 49% 77% ₹ 1,014 cr ₹ 853 cr Q2FY21 Q2FY22 Q1FY22 Q2FY22 Completed Inventory: New Products: ❖ The Camellias : ❖ Rs 314 crore ✓ Record sales of Rs 1,037 crore;
Slide 16: Q2FY22 Results
Q2FY22 Results Strong Financial Performance: PAT at Rs 380 crore; Surplus cash generation of Rs 759 crore ❑ Revenue stood at Rs 1,557 crore, reflecting a Y-o-Y decrease of 10% ❑ EBITDA at Rs 534 crore, reflecting a Y-o-Y decrease of 7%. ❑ PAT at Rs 380 crore vs LY: Rs 236 crore; reflecting a Y-o-Y g
Slide 17: Consolidated Profit & Loss Q2FY22
Consolidated Profit & Loss Q2FY22 PAT at Rs 380 crore; Y-o-Y growth of 61% Particular % Change % Change Q2FY22 Q1FY22 Q2FY22 - Vs Q2FY21 Q2FY22 - Vs Q1FY22 Q2FY21 Income a) Revenue from operations 1,481 1,140 30% 1,610 (8%) b) Other income 76 103 (26%) 113 (33%) Total income 1,557 1,242 25% 1,723 (1
Slide 18: Finance cost
Finance cost Focus continues on reduction in interest cost 9.7% 8.4% 8.2% 7.96% FY20 exit FY21 exit Q1FY22 Q2FY22 ❑ Targeting further reduction of 20-30 bps ❑ Latest funding ❖ Rental assets at sub 7% ❖ Development assets at ~ 7.5% - 7.7% 18
Slide 19: Residual EBITDA as on 30.09.2021
Residual EBITDA as on 30.09.2021 EBIDTA to be recognized from sales EBIDTA to be recognized from Inventory Project done till 30th Sep-21 as on 30th Sep-21 Completed Inventory Camellias 2,370 2,120 DLF 5 125 5 New Gurgaon 145 75 National Devco 560 450 Sub-Total 3,200 2,650 New Products (launched from
Slide 20: Completed Inventory / New Products
Completed Inventory / New Products Q2FY22 Till 30th Sept-21 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) (in Rs cror
Slide 21: Consolidated Cash Flow – Q2FY22
Consolidated Cash Flow – Q2FY22 Significant surplus cash generation during the Quarter Particulars Q2FY22 Q1FY22 Q2FY21 Inflow •Collection from Sales 1,403 619 541 •Rental Inflow (DLF Limited) 45 12 40 Sub-Total Inflow 1,448 631 581 Outflow •Construction (Net) 117 109 207 •Govt. Approval fee/ Land a
Slide 22: Consolidated Balance Sheet Abstract
Consolidated Balance Sheet Abstract Particulars As on 30.09.2021 As on 31.03.2021 Non-Current Assets 28,263 28,217 Current Assets 25,073 26,593 TOTAL ASSETS 53,336 54,810 Equity 35,586 35,364 Non-Current Liabilities 6,485 6,661 Current Liabilities 11,266 12,784 TOTAL LIABILITIES 53,336 54,810 22
Slide 23: Debt Update – Q2FY22
Debt Update – Q2FY22 Net Debt reduction of ~ Rs 759 crore in Q2/ Rs 900 crore in H1FY22 Net Debt Sources NCD, Particulars Q2FY22 Q1FY22 Q4FY21 Q2FY21 ₹ 1,000 cr Banks, ₹ 3,503 cr Gross opening debt 6,033 6,510 6,419 7,496 HDFC/Others, ₹ 938 cr Less : Debt repaid during quarter (1,292) (477) (859) (1
Slide 24: Debt Management
Debt Management Committed to further debt reduction in medium term Particulars Amount (in Rs crore) Net Debt as on 30.09.2021 (3,985) Receivables (including New Products) 3,768 Construction Payables (including New Products & capex) (1,329) Other Recoveries/Refunds 500 Residual Net Debt (1,046) Compl
Slide 25: Rental Portfolio Snapshot (DLF Limited) – Q2FY22
Rental Portfolio Snapshot (DLF Limited) – Q2FY22 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 0.1 70% 355 81 1,038 DLF5 0.5 0.5 0.0 100% 49 29 804 IT Sez, Ko
Slide 26: DCCDL Business Update
DCCDL Business Update 26 DLF Avenue, Saket
Slide 27: Outlook & Key Updates
Outlook & Key Updates Collections remain steady; Long term outlook remains positive ❑ Improved sentiments post 2nd wave; Mid-term exits have reduced; site visits have gone up ❑ Emphasis on extensive tenant interactions; exit savings and market seeding for future growth ❑ Collections remain robust at
Slide 28: Portfolio Snapshot – Q2FY22
Portfolio Snapshot – Q2FY22 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 83 113 65 15,852 Cyber Sez 2.9 2.6 0.2 91 82 58 4,072 Cyber Park 2.6 2.4 0.2 93 119 11
Slide 29: Historical Performance: Offices
Historical Performance : Offices Particulars Q2FY22 Q1FY22 FY21 FY20 FY19 Area(msf) - Completed 30.6 30.3 30.3 26.4 26.4 - Under 4.5 4.9 3.9 6.6 3.3 Construction Total area 35.2 35.2 34.2 33.1 29.7 Occupancy % - Completed 86% 86% 88% 95% 94% New Leases (msf) 1.1 0.3 1.5 1.5 2.1 Re Leasing (msf)* 0.1
Slide 30: 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 38 crore Rates in INR psf/month Rates in INR psf/month 122 126 130 76 80 84 91 96 100 61 63 57 FY 22 FY 23 FY 24 FY 22 FY 23
Slide 31: Mark-to-Market Potential
Mark-to-Market Potential Cyber City, Gurugram* Cyber City, Chennai 11% 4% 117 75 106 72 Weighted Avg. Rental Market Rental Weighted Avg. Rental Market Rental Note: FY 22 will be marginally adversely impacted due to COVID 19 Market rental means weighted average headline rental for new leases entered
Slide 32: 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 33: Result Highlights – Q2FY22
Result Highlights – Q2FY22 Strong rebound in Retail; Offices continues to exhibit resiliency Rental Revenue Escalation Net Debt Rs 821 crore 11% rent escalations on 2 msf Rs 19,640 crore Operational Rating Gross Leasing Portfolio Assigned 34.5 msf CRISIL AA/Stable 1.5 msf (NCD) Note: 1. Net Debt = G
Slide 34: Development Update
Development Update New Product development on track ~ Project Project Current Status Latest Update Size ▪ Phase-I (~1.5 msf) ▪ Block 2 & 3 under construction Downtown, 11 msf ▪ Structure complete; ▪ Pre-leasing: ~0.9 msf + Gurugram Façade/MEP work underway ~0.4 msf of hard option Downtown, ▪ Phase I
Slide 35: Development Update
Development Update DLF Downtown, Gurugram DLF Downtown, Chennai Artist’s impression; Not an actual image Artist’s impression; Not an actual image Actual Status Actual Status 35
Slide 36: DCCDL: Q2FY22 Results
DCCDL : Q2FY22 Results Revenue grew by 8% Y-o-Y; driven by rebound in retail,PAT at Rs 231 crore, Y-o-Y growth of 36% ❑ Revenue at Rs 1,123 crore, Y-o-Y growth of 8% ✓ Offices rental growth of 5% Y-o-Y driven by Cyber Park, Chennai Block 11 and renewals/escalations ✓ Retail revenues rebounded; Y-o-Y
Slide 37: DCCDL Consolidated Financial Summary - Q2FY22
DCCDL Consolidated Financial Summary - Q2FY22 Revenue grew by 8% Y-o-Y; driven by rebound in retail,PAT at Rs 231 crore, Y-o-Y growth of 36% % change % change Particulars Q2FY22 Q1FY22 Q2FY21 Q-o-Q Y-o-Y Rental Income Office 701 729 (4%) 667 5% Retail 120 42 188% 51 135% Service & Other Operating In
Slide 38: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Particulars Q2FY22 Q1FY22 Operating Cash flow before Interest & tax 851 687 Interest Expense (397) (361) Interest Income 12 15 Tax (net)1 (51) (39) Operating Cash flow after Interest & tax 415 302 Capex (479)2 (190) Net Surplus/Defiict – After Capex (64) 112 Div
Slide 39: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 30.09.2021 As on 31.03.2021 Non-Current Assets 29,152 29,018 Current Assets 1,377 1,472 Total Assets 30,529 30,490 Equity 5,863 5,930 Non-current Liabilities 21,230 18,837 Current Liabilities 3,436 5,723 Total Liabilities 30,529 30,490 39
Slide 40: DCCDL Consolidated - Debt Update
DCCDL Consolidated - Debt Update Net Debt Sources Particulars Q2FY22 Q1FY22 HDFC/Others Banks, , ₹ 8,185 cr ₹ 10,782 cr Gross opening debt 20,390 20,267 Less : Debt repaid during quarter (1,143) (576) NCD, ₹ 1,642 cr Repayment Schedule Add : New Borrowing during Qtr. 1,362 699 < 1 Yr, ₹ 1,153 cr > 3
Slide 41: DCCDL Consolidated – Interest rates
DCCDL Consolidated – Interest rates Focus continues on reduction in interest cost 8.90% 7.45% 7.42% 7.37% FY20 Exit FY21 Exit Q1FY22 Q2FY22 ▪ Latest funding at sub 7% ▪ 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: The Pavillion, DLF Golf & Country Club Crest Club
Crest Club The Pavillion, DLF Golf & Country Club Club Ultima Club House, Regal Gardens 43