Dlf Limited · NSE:DLF
Dlf — Q4 FY2022 Earnings Presentation
45 slides from Dlf's earnings presentation, May 2022
Slide 1: Q4 & FY22 Results Presentation
ONE Midtown, New Delhi Q4 & FY22 Results Presentation 1 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+ 330 msf+ 100 msf+ Track Years of experience in Real estate Area developed Deliveries si
Slide 4: 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 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: Development Update – Launch Calendar of 35 msf
Development Update – Launch Calendar of 35 msf Sales potential ~Rs 47,000 crore; Value enhancement (~17%) - driven by price growth Area in msf ~ Project Sales Potential Till FY22 Project Size FY22-23 FY23-24 Beyond FY24 ( ~ in Rs crore) 18M (~ in msf) DLF - GIC Residential JV, 8 17,500 2.1 - 2.0 4.0
Slide 8: Cumulative New Sale bookings of Rs 7,273 crore in FY22
Cumulative New Sale bookings of Rs 7,273 crore in FY22 Highest New Sales bookings in the last 10 years Sales booking trend ₹ 7,273 cr ₹ 2,729 cr ₹ 2,018 cr 136% ₹ 1,512 cr ₹ 3,084 cr ₹ 1,014 cr Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY21 FY22 FY22 Highlights: Area sold ~ 5.8 msf ❖ Super Luxury segment: ❖ Indep
Slide 9: Residual EBITDA as on 31.03.2022
Residual EBITDA as on 31.03.2022 Value accretion from New Sales & Price growth; Margin at 50% + EBITDA Movement EBIDTA to be EBIDTA to be recognized Consistent EBITDA accretion through Project recognized from sales from Inventory as on 31st done till 31st Mar-22 Mar-22 sales ramp-up & price growth C
Slide 10: Completed Inventory / New Products
Completed Inventory / New Products Q4FY22 Till 31st Mar-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) (in Rs crore
Slide 11: Our ESG Initiatives
Our ESG Initiatives Resilient Business, Responsible Operations, Reliable Engagements ❑ Platinum LEED certifications ❑ Alignment with ISO 14,001 standards ❑ Installation of MERV-14 air filters ❑ Sustainable construction material including FSC certified ❑ Reducing Energy intensity across our assets wo
Slide 12: ESG Achievements
ESG Achievements Certifications / Awards ❑ Member of DJSI Index in Emerging markets category consecutively for 2nd year ❑ Only Real estate company from India to be included in the Index ❑ Score in the 97th Percentile ❑ Ranked # 1 in India amongst listed Real Estate developers (Office -Development) ❑
Slide 13: DLF Limited: Business Update
DLF Limited: Business Update
Slide 14: Outlook
Outlook ❑ Sustained Demand momentum; Absorption outpacing supply ❑ Luxury segment & larger homes leading the demand momentum Industry ❑ Inflationary pressures and rising mortgage rates may marginally increase costs, however, affordability to remain intact given strong hiring trends & salary hikes ac
Slide 15: Moderate impact of Cost inflation
Moderate impact of Cost inflation Price increase of 5-6% will offset impact Residential Segment Inflation impact as a % Construction cost as % Estimated Product Segment of Sales Value on Our of Sales Value Inflation Product Portfolio Luxury Low-rise 30% 3.6% - 4.5% 12% -15% High-rise 35% 2.4% - 5.3%
Slide 16: Impact of Interest rate cycle reversal
Impact of Interest rate cycle reversal Assumptions: ✓ Interest rate hike assumed during the fiscal: 200 bps, ✓ Weighted average impact during the fiscal: 120 bps Particulars DLF DCCDL Gross Debt (as on March 31,2002) Rs 3,900 crore Rs 20,189 crore Weighted Avg. Cost of Debt( Mar-22 Exit) 7.03% 7.02%
Slide 17: Highlights – Q4FY22
Highlights – Q4FY22 Strong business performance; Record high sales; Sustained high collections Net Sales Surplus Booking Collections Cashflow Rs 2,729 crore Rs 541 crore Record sales during Rs 1,289 crore Sustained collections Consistent Surplus the quarter Cash generation ESG Rating Credit Rating N
Slide 18: Highlights – FY22
Highlights – FY22 Significant ramp up in New sales; Highest levels of surplus cash generation; Lowest leverage Net Sales Market Share1 Collections Booking Rs 7,273 crore 13% Rs 4,652 crore Strongest performance in Significant ramp-up 2x growth Y-o-Y the last 10 years in collections Surplus Net Debt
Slide 19: FY22 Results
FY22 Results Strong financial performance; PAT at Rs 1,513 crore Y-o-Y growth of 38% Highest ever surplus cash generation of Rs 2,205 crore ❑ Revenue stood at Rs 6,138 crore; reflecting a Y-o-Y increase of 3% ❑ EBITDA at Rs 2,163 crore; Y-o-Y increase of 11%; Margins improved by 200 bps Y-o-Y due to
Slide 20: Q4FY22 Results
Q4FY22 Results PAT at Rs 414 crore; Consistent surplus cash generation - Rs 541 crore ❑ Revenue stood at Rs 1,652 crore, down 13% Y-o-Y primarily due to lower PL issuance ❑ EBITDA at Rs 472 crore, a Y-o-Y drop of 27% due to higher operating expenses & lower other income ❑ PAT at Rs 414 crore; down 1
Slide 21: Consolidated Profit & Loss Q4 & FY22
Consolidated Profit & Loss Q4 & FY22 Revenue from Operations up 6%, EBITDA at 35% margins (200 bps improvement) PAT at Rs 1,513 crore, Y-o-Y growth of 38% % Change % Change % Change Particular Q4FY22 Q3FY22 Q4FY22 - Q4FY21 Q4FY22 - FY22 FY21 FY22 - Vs Vs Q3FY22 Vs Q4FY21 FY21 Income a) Revenue from
Slide 22: Consolidated Cash Flow
Consolidated Cash Flow Consistent surplus cash generation from Operations Particulars Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Inflow •Collection from Sales 622 1,403 1,220 1,212 4,457 •Rental Inflow (DLF Limited) 12 45 61 77 195 Sub-Total Inflow 635 1,448 1,281 1,289 4,652 Outflow •Construction (Net) 109 1
Slide 23: Consolidated Balance Sheet Abstract
Consolidated Balance Sheet Abstract Particulars As on 31.03.2022 As on 31.03.2021 Non-Current Assets 28,413 28,217 Current Assets 24,091 26,593 TOTAL ASSETS 52,503 54,810 Equity 36,382 35,364 Non-Current Liabilities 5,718 6,661 Current Liabilities 10,404 12,784 TOTAL LIABILITIES 52,503 54,810 Moveme
Slide 24: Debt Update – FY22
Debt Update – FY22 Net Debt reduction of Rs 2,205 crore in FY22 Net Debt – Consistent reduction from operational surplus Sources Particulars Q4FY21 Q3FY22 Q4FY22 Banks, Gross opening debt 6,420 5,441 4,755 ₹ 3,106 cr, 80% HDFC/Others, Diversified ₹ 294 cr, 7% Less : Debt repaid during quarter (859)
Slide 25: Debt Management
Debt Management Committed to further debt reduction in medium term Particulars Amount (in Rs crore) Net Debt as on 31.03.2022 (2,680) Receivables (including New Products) 4,083 Construction Payables (including New Products) (2,077) Capex (Rental assets ~ 2msf1) (937) Residual Net Debt (1,611) Comple
Slide 26: Development Update
Development Update Actual Status ONE Midtown, New Delhi 26
Slide 27: Development Update – DLF City Floors
Development Update – DLF City Floors Artist’s impression; Not an actual image Actual Status Actual Status 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) – Q4FY22
Rental Portfolio Snapshot (DLF Limited) – Q4FY22 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 82% 331 58 1,034 DLF5 0.6 0.6 0.0 100% 42 23 801 IT Sez, Ko
Slide 30: DCCDL Business Update
DLF Downtown, Gurugram DCCDL Business Update 30 Artist’s impression; Not an actual image
Slide 31: Outlook
Outlook Office Occupancy improving; Rebound in retail continues ❑ Trend towards large occupiers shifting to credible developers with A+ Grade assets at established locations Macro ❑ India’s wage, talent & rental competitiveness to bring continuous flow of workspace requirements ❑ Hybrid models still
Slide 32: Maintaining Leadership position in Safety/Sustainability
Maintaining Leadership position in Safety/Sustainability LEED Zero Water certification from USGBC- ~25 msf; one of the largest portfolio globally with this accreditation LEED Platinum Certification from USGBC USGBC’s LEED Zero Water Certification from GBCI 17 Swords of Honour from British Security C
Slide 33: Portfolio Snapshot – Q4FY22
Portfolio Snapshot – Q4FY22 Office occupancy inching up steadily; exited at 88% GAV increased by 10% driven by rental increase / new capex / commencement of new projects Weighted Average Leasable Area Leased Area Vacant Area % Leased WALE GAV1 Building Rental rate Area (in msf) (in msf) (in msf) (in
Slide 34: Portfolio - Tenant Mix
Portfolio - Tenant Mix Well diversified & balanced portfolio with lower concentration risk FY22 (based on revenue) FY21 (based on revenue) Top 10 Tenants % Top 10 Tenants % Cognizant 5% Cognizant 5% Retail American Express 3% IBM 3% Tenant Mix IBM 3% KPMG 3% Concentrix 3% Concentrix 2% KPMG 2% BA Co
Slide 35: Result Highlights – FY22
Result Highlights – FY22 Rental income grew by 10% Y-o-Y Strong rebound in Retail; Rental Revenue Gross Leasing Net Debt Rs 3,349 crore 6.1 msf Rs 19,063 crore Operational Rating Sustainability Portfolio Upgraded LEED Zero Water 37.9 msf ICRA AA/Stable Highest certification in the world Note: 1. Net
Slide 36: Development Update
Development Update New Product development being ramped up & remains on track ~ Project Project Current Status Latest Update Size ▪ Phase-I (~1.7 msf); OC expected in Q1FY23 Downtown, ▪ Pre-leasing: ~1.1 msf + 12.1 msf ▪ Phase-II (~2 msf)- construction Gurugram ~0.4 msf of hard option commenced Down
Slide 37: 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 37
Slide 38: DCCDL: FY22 Results
DCCDL : FY22 Results Revenue grew by 3% ; Office rentals grew by 5% & Retail grew by 67%; PAT at Rs 1,002 crore; growth of 10% ❑ Revenue at Rs 4,533 crore, an increase of 3% Y-o-Y ✓ Office rentals grew by 5%; Retail revenues witnessed growth of 67% ✓ Other income drop by 57% due to one-offs in the b
Slide 39: DCCDL: Q4FY22 Results
DCCDL : Q4FY22 Results Revenue decreased by 8% Y-o-Y primarily due to lower other income; PAT at Rs 287 crore ❑ Revenue at Rs 1,193 crore, Y-o-Y decrease of 8% ✓ Office rentals witnessing steady growth 4% Y-o-Y; Retail revenues impacted due to covid wave in Jan/Feb ✓ Other income drop due to one-off
Slide 40: DCCDL Consolidated Financial Summary - Q4 & FY22
DCCDL Consolidated Financial Summary - Q4 & FY22 Rental income grew by 10% Y-o-Y- driven by retail rebound, PAT at Rs 1,002 crore - 10% Y-o-Y growth % change % change % change Particulars FY22 FY21 Q4FY22 Q3FY22 Q4FY21 Y-o-Y Q-o-Q Y-o-Y Rental Income Office 2,889 2,753 5% 744 712 4% 713 4% Retail 46
Slide 41: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Particulars Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Operating Cash flow before 687 851 1,017 874 3,429 Interest & tax Interest Expense (Net) (346) (385) (338) (335) (1,404) Tax (net)1 (39) (51) (68) (106) (264) Operating Cash flow after 302 415 611 433 1,761 Interest &
Slide 42: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 31.03.2022 As on 31.03.2021 Non-Current Assets 29,398 29,019 Current Assets 1,353 1,470 Total Assets 30,751 30,490 Equity 6,431 5,930 Non-current Liabilities 20,528 18,837 Current Liabilities 3,791 5,723 Total Liabilities 30,751 30,490 42
Slide 43: Debt Update – Q4FY22
Debt Update – Q4FY22 Net Debt Sources Particulars Q4FY21 Q3FY22 Q4FY22 HDFC/Others, ₹ 7,926 cr, Gross opening debt 19,735 20,609 20,558 39% Diversified Less : Debt repaid during quarter (2,624) (1,351) (821) sources of funding Banks, Add : New Borrowing during Qtr. 3,155 1,300 452 ₹ 9,997 cr, NCD, 5
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: The Camellias Club, DLF 5, Gurugram
The Camellias Club, DLF 5, Gurugram