Slide 1: Schedule of Earnings Call cover letter
DLF LIMITED DLF Gateway Tower, R Block, DLF City Phase – III, Gurugram – 122 002, Haryana (India) Tel.: (+91-124) 4396000, investor-relations@dlf.in 21st October 2022 The General Manager The Vice-President Dept. of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaz
Slide 2: Q2FY23 Results Presentation
Q2FY23 Results Presentation The Grove, DLF 5, Gurugram Artist’s impression; not an actual image
Slide 3: Agenda
AGENDA DLF LIMITED: DCCDL: Overview BUSINESS BUSINESS UPDATE UPDATE 01 02 03 2
Slide 4: 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 5: 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 6: 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 7: 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 8: New Sale bookings: Rs 2,052 crore in the quarter; Rs 4,092 crore in H1
New Sale bookings: Rs 2,052 crore in the quarter; Rs 4,092 crore in H1 Encouraging response across all 3 new launches Sales booking trend ₹ 4,092 cr 62% ₹ 2,040 cr ₹ 2,052 cr ₹ 2,526 cr ₹ 1,512 cr H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY23 Highlights: Area sold ~ 1.6 msf ; 75% + sale bookings from Ne
Slide 9: Healthy Product Mix: New Sales booking of Rs 2,052 crore
Healthy Product Mix: New Sales booking of Rs 2,052 crore during the quarter Well diversified across geographies & segments Segment Mix Geographic Mix DLF City, Gurugram Garden City Enclave, 10% New Gurgaon Luxury 24% 25% Premium 49% DLF 5, Gurugram Super-Luxury 38% Panchkula 26% 23% Value Chennai 2%
Slide 10: DLF 5, Gurugram
DLF 5, Gurugram The Grove Artist’s rendition of 503 sq. yards plot
Slide 11: The Grove
The Grove Only low-rise luxury development in DLF 5, Gurugram Overview ❑ Project Size: ~ 0.85 msf, ❑ 292 units ❑ Sales potential: ~ Rs 1,888 crore ❑ Sold (as on 30th Sept -2022) ✓ Sold Area: ~ 0.14 msf ✓ Sale Value: Rs 310 crore ❑ Avg. realization: Rs 22,000 psf The Grove Project Attributes ✓ Baseme
Slide 12: Artist’s impression; not an actual image
Artist’s impression; not an actual image
Slide 13: The Valley Gardens, Panchkula
The Valley Gardens, Panchkula – Low rise development Where nature is your closest neighbor Overview ❑ Project Size: spread across 34 acres; ~ 2.2 msf ❑ Launched Area: ~ 1.5 msf; ❑ Sales potential of Rs 1,300 crore ❑ Released: Phase I (0.7 msf) ❑ Sold (as on 30th Sept -2022) ✓ Sold Area: 0.6 msf ✓ Sa
Slide 14: Sector 93, Garden City, Gurugram
Sector 93, Garden City, Gurugram Garden City Enclave Artist’s impression; not an actual image
Slide 15: Garden City Enclave, Sec 93, Gurugram
Garden City Enclave, Sec 93, Gurugram – Low rise development A private low-rise living concept - high on luxury, light and space Overview ❑ Project Size: ~ 27 acres1; ~ 0.6 msf ❑ Sales potential of Rs 500 crore ❑ Sold (as on 30th Sept -2022) ✓ Almost sold out ✓ Sale Value: ~ Rs 500 crore ❑ Average r
Slide 16: Development Update – Launch Calendar of 35 msf
Development Update – Launch Calendar of 35 msf Sales potential ~Rs 47,000 crore Area in msf Project Sales Till FY22 Project Size Potential H1FY22-23 H2FY22-23 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 – Hines/ADIA Offices
Slide 17: Development Update
Development Update Product potential (near term) ~Rs 12,350 crore Planned products Available Inventory (H2FY23) Rs 8,844 crore Rs 3,500 crore ❑ Planned residential developments across Completed Inventory Launched Products Gurugram & Panchkula; to be launched (Till 30th Sep-22) (Till 30th Sep-22) sub
Slide 18: Residual Gross Margin as on 30.09.2022
Residual Gross Margin as on 30.09.2022 New Products to lead value accretion Gross Margin Gross Margin to be recognized from sales Gross Margin to be Movement Project recognized from Inventory done till 30th as on 30th September-2022 September-2022 ₹ 7,716 cr ₹ 8,645 cr Completed Inventory Camellias
Slide 19: Completed Inventory / New Products
Completed Inventory / New Products Q2FY23 Till 30th Sept-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 cror
Slide 20: DLF Limited: Business Update
DLF Limited: Business Update Artist’s impression; not an actual image ONE Midtown, New Delhi
Slide 21: Outlook
Outlook ❑ Demand for larger homes/luxury segment continues to exhibit sustained momentum ❑ Quality products from larger & credible players continue to be the preferred choice; leading to further consolidation and higher market share for larger players Industry ❑ Interest rate hike on expected lines;
Slide 22: Highlights – Q2FY23
Highlights – Q2FY23 Sustained business performance in line with guidance New Sales Surplus Booking Collections Cashflow Rs 409 crore1 Rs 2,052 crore Rs 1,252 crore Consistent Surplus Cash generation ESG Rating Credit Rating Net Debt DJSI ICRA AA-/Positive Rs 2,142 crore Included in the Index in Redu
Slide 23: Q2FY23 Results
Q2FY23 Results Revenue at Rs 1,360 crore; PAT at Rs 487 crore Y-o-Y growth of 28% ❑ Revenue stood at Rs 1,360 crore; reflecting a Y-o-Y drop of 13% ❑ Gross margins improved to 60% vs 50% LY ❑ EBITDA margins improved to 36% vs 34% LY. EBITDA at Rs 495 crore; Y-o-Y drop on account of lower other incom
Slide 24: Consolidated Profit & Loss Q2FY23
Consolidated Profit & Loss Q2FY23 Revenue at Rs 1,360 crore; PAT at Rs 487 crore Y-o-Y growth of 28% % Change % Change Particular Q2FY23 Q1FY23 Q2FY23 - Vs Q2FY22 Q2FY23 - Vs Q1FY23 Q2FY22 Income Revenue from operations 1,302 1,442 (10%) 1,481 (12%) Cost of Sales 523 672 (22%) 734 (29%) Gross Margin
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow Consistent surplus cash generation from Operations Particulars Q1FY23 Q2FY23 H1FY23 Inflow •Collection from Sales 991 1,152 2,143 • Rental Inflow 81 100 181 Sub-Total Inflow 1,072 1,252 2,324 Outflow •Construction (Net) 197 298 495 •Govt. Approval fee/ Land acquisition/disposa
Slide 26: Consolidated Balance Sheet Abstract
Consolidated Balance Sheet Abstract Particulars As on 30.09.2022 As on 31.03.2022 Non-Current Assets 28,354 28,413 Current Assets 24,400 24,091 TOTAL ASSETS 52,754 52,503 Equity 36,597 36,382 Non-Current Liabilities 5,569 5,718 Current Liabilities 10,588 10,404 TOTAL LIABILITIES 52,754 52,503 25
Slide 27: Debt Update – Q2FY23
Debt Update – Q2FY23 Net Debt reduction of Rs 117 crore from operating cash flows Sources Particulars Q4FY22 Q1FY23 Q2FY23 Gross opening debt 4,755 3,900 3,728 HDFC/Others, Banks, ₹ 65 cr, 2% ₹ 3,044 cr, Less : Debt repaid during quarter (855) (172) (120) 84% Diversified sources of funding Add : New
Slide 28: Debt Management
Debt Management Committed to further debt reduction in medium term Particulars Amount (in Rs crore) Net Debt as on 30.09.2022 (2,142) Receivables (including New Products) 5,515 Construction Payables (including New Products) (2,885) Capex (Rental assets ~ 2msf) (867) Residual Net Debt (379) Completed
Slide 29: Development Update: ONE Midtown, New Delhi
Development Update ONE Midtown, New Delhi Status as on October 20,2022; terrace slab casting done for all towers 28
Slide 30: 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 29
Slide 31: 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 30
Slide 32: Rental Portfolio Snapshot (DLF Limited) – Q2FY23
Rental Portfolio Snapshot (DLF Limited) – Q2FY23 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% 331 52 1,034 DLF5 0.61 0.61 0.0 100% 41 17 801 IT Se
Slide 33: DCCDL Business Update
DCCDL Business Update 32 DLF Downtown, Gurugram
Slide 34: Outlook
Outlook Office Occupancy exhibiting steady improvement; Retail momentum continues ❑ Move to high quality assets continues. Macro ❑ Sustainability and wellness inching up in occupiers' decision making. ❑ Interest rates hardening & lowering of economic growth globally has created an environment of unc
Slide 35: DLF Downtown, Gurugram: 100% pre-leased
DLF Downtown, Gurugram : Phase-I (1.7 msf) rentals commenced 100% pre-leased amidst pandemic; vindicating demand for quality assets DLF Downtown, Gurugram Steady State Rs 240 crore Rentals (Annual) Top 5 Occupiers 77 % Leasable Area Incremental 7% Portfolio Growth (Exit rental) Wt. Avg Rs 136 psf Re
Slide 36: Value creation; Asset repositioning – DLF Avenue
Value creation; Asset repositioning – DLF Avenue Significant rental upside achieved; Steady state rentals almost doubled post repositioning Before Refurbishment - 2018 After Refurbishment - 2021 ✓ Asset repositioning to match contemporary/ modern malls Decade old property ✓ Experiential shopping w
Slide 37: 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 2021 – 22: DCCDL awarded USGBC’S LEED Zero Water Certification. Increased are of ~ 40 (Green Business msf certified for net
Slide 38: Portfolio Snapshot – Q2FY23
Portfolio Snapshot – Q2FY23 Office occupancy continues to exhibit steady improvement; Retail momentum continues; Portfolio occupancy at 90% Weighted Average Leasable Area1 Leased Area Vacant Area % Leased WALE GAV Building Rental rate Area (in msf) (in msf) (in msf) (in Rs psf) (months) (in Rs crore
Slide 39: Portfolio - Tenant Mix
Portfolio - Tenant Mix Well diversified & balanced portfolio with lower concentration risk Offices: Tenant Mix Retail Tenant Mix Q2FY23 (based on revenue) Q2FY23 (based on leased area) 45% Top 10 Tenants % Top 10 Tenants % Cognizant 5% Cognizant 6% American Express 3% IBM 4% IBM 3% Concentrix 3% 2%
Slide 40: Result Highlights – Q2FY23
Result Highlights – Q2FY23 Rental income grew by 20% Y-o-Y; driven by strong rebound in Retail Operational Rental Revenue Gross Leasing Portfolio Operational portfolio: Rs 986 crore 39.6 msf 1.6 msf Downtown Gurugram (Phase-I) operations commenced Net Debt Rating Sustainability DLF Cyber City, Gurug
Slide 41: 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): Operations commenced ▪ Phase-I: office space fully Downtown, ▪ Phase-II (~2 msf): construction commenced ~12 msf leased; amenity area Gurugram ▪ Pha
Slide 42: 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 41
Slide 43: DCCDL : Q2FY23 Results
DCCDL : Q2FY23 Results Revenue increased by 22% Y-o-Y due to higher Retail revenues; PAT at Rs 355 crore; 54% growth ❑ Revenue at Rs 1,369 crore, Y-o-Y increase of 22% ✓ Office rentals witnessing steady growth 14% Y-o-Y; ✓ Retail revenues grew by 54% driven by strong rebound and low base effect ❑ EB
Slide 44: DCCDL Consolidated Financial Summary - Q2FY23
DCCDL Consolidated Financial Summary - Q2FY23 PAT at Rs 355 crore; 54% Y-o-Y growth driven by growth in retail revenues % change % change Particulars Q2FY23 Q1FY23 Q2FY22 Q-o-Q Y-o-Y Rental Income Office 801 759 5% 701 14% Retail 184 167 10% 120 54% Service & Other Operating Income 351 299 17% 267 3
Slide 45: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Particulars Q2FY23 Q1FY23 Operating Cash flow before Interest & tax 1,044 906 Interest Expense (Net) (363) (294) Tax (net)1 (113) (99) Operating Cash flow after Interest & tax 568 513 Capex (287) (278) Net Surplus/Deficit – After Capex 281 235 Dividend (752) - N
Slide 46: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 30.09.2022 As on 31.03.2022 Non-Current Assets 29,473 29,398 Current Assets 2,164 1,353 Total Assets 31,637 30,751 Equity 6,357 6,431 Non-current Liabilities 20,177 20,529 Current Liabilities 5,103 3,791 Total Liabilities 31,637 30,751 45
Slide 47: Debt Update – Q2FY23
Debt Update – Q2FY23 Net Debt Sources Particulars Q4FY22 Q1FY23 Q2FY23 HDFC/Others, ₹ 7,907 cr, Gross opening debt 20,558 20,189 20,137 38% Banks, Diversified Less : Debt repaid during quarter (821) (390) (1,290) ₹ 9,861 cr, sources of 47% funding Add : New Borrowing during Qtr. 452 338 2,000 NCD, ₹
Slide 48: 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 49: The Camellias Club, DLF 5, Gurugram
The Camellias Club, DLF 5, Gurugram