Dlf Limited · NSE:DLF
Dlf — Q4 FY2011 Earnings Presentation
23 slides from Dlf's earnings presentation, May 24, 2011
Slide 1: Q4 & FY11 Analyst Presentation
Q4 & FY11 Analyst Presentation May 24, 2011 1
Slide 2: Safe Harbour
SAFE HARBOUR This presentation contains certain forward looking statements concerning DLF’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The
Slide 3: FY 11…The Year Gone By
FY 11…The Year Gone By Ø H1 FY11 witnessed healthy economic conditions, stability in global markets and ample liquidity boosting consumer confidence and investor sentiment Ø H2 FY11 was marked by robust growth, albeit higher than normal inflation due to increasing commodity prices. Given this enviro
Slide 4: Industry Outlook FY12
Industry Outlook ….FY 12 Ø RBI actions will continue to result in a tighter liquidity environment increasing the chances of a further tempering of growth. Ø Genuine ‘actual user’ consumer / corporate demand both in the residential & commercial leasing segments continues to be healthy. However, specu
Slide 5: Company – Current Business Strategy
Company – Current Business Strateg y Ø Residential – Continue with strategy of volume moderation in high construction costs - low margin projects; focus on high margin projects – luxury homes, plotted, etc Ø Commercial Leasing – Increase average rentals and focus on leasing of semi-finished and read
Slide 6: Development Company “DevCo”
Development Compan y “DevCo” Ø 10 msf sales achieved in FY 11 vs 12.5 msf in FY 10 (Q4FY 11 sales booked at 3.8 msf versus 3.6 msf in Q4 FY 10 and 2.5 msf in Q3 FY 11) Ø While sales book ing in FY11 was marginally lower, average realization was at Rs 6,500 psf (up 14% from FY10) Ø All projects launc
Slide 7: DevCo (cont.)
DevCo..(cont..) Ø FY 12 Outlook § Planned launches of 10 -12 msf - Plotted developments in Indore, Gurgaon , Chandigarh, Lucknow ~ 10 msf - Group Housing projects in Gurgaon ~ 2 msf § Product mix skewed towards plotted development in order to reduce execution risks & negate inflationary pressures. §
Slide 8: DevCo Q4 FY11
DevCo Q4 FY11 Total Mn sqft Particulars Q4-11 Q4- 10 Q3 - 11 Sales Status Opening Balance 44.80 35.21 42.32 Add:- Sale Booked During the Qty 3.80 3.64 2.48 Less : Handed over / Suspended 2.19 0.00 0.00 Closing Balance 46.40 38.85 44.80 Under Construction Opening Balance 40.69 33.40 40.69 New Launche
Slide 9: Rent Company “RentCo”
Rent Compan y “RentCo” FY 11 FY 12 Outlook Offices Offices Ø 4 msf leased in FY 11 vs 1 msf in FY 10, total as Ø Volumes expected to be reasonable with stable rentals on date 22.48 msf and limited new launches / construction Ø Gross leasing of ~1.4 msf in Q4 FY 11. Net Ø Target to achieve leasing vo
Slide 10: RentCo Q4 FY11
RentCo. Q4 FY11 Total Mn sqft Particulars Q4-11 Q4- 10 Q3 – 11 Lease Status Opening Balance 23.73 18.71 22.06 Add:- Lease Booked During the Qty 1.38 0.69 1.97 Less :- Cancellation / Adjustment (1.34) 0.00 (0.29) Closing Balance 23.77 19.40 23.73 Under Construction Opening Balance 15.69 17.13 15.80 N
Slide 11: Debt Reduction Strategy
Debt Reduction Strateg y Ø Debt reduction plan impacted b y - § Further investments in land aggregation and capex (Rent Co) ~ Rs 1,800 Crs in FY 11 § Delayed approvals leading to slower new launches § Monies spent on Non-recurring items such as – one time government charges / Preference Capital rede
Slide 12: Debt Position – FY11
Debt Position – FY11 All figures in Rs. Crs Debt Pref Cap. Consol. Gross Opening Bal ( as on 1st Jan-11 ) 23,611 202 23,813 Less / Add : Repaid during Q4-11 (414) (414) : New loan availed 1,035 1,035 : Debt Increase due to Consolidation (242) (242) Gross Debt position ( as on 31st Mar-11 ) 23,990 20
Slide 13: Debt Coverage
Debt Coverage (Amt in Rs Crs) Ø Total Net Debt (as on 31st March 2011) 21,424 Ø Less : earmarked for divestment / non core / others 5,000 Debt related to core business (Rent Co. & Dev. Co.) 16,424 Annualized Cash Flow/ ~ Allocated EBIDTA Asset Cover Debt (Rs Crs) (x) (Rs Crs) Rent Co 1,750 p.a.** ~
Slide 14: Non-core asset divestments
Non- core asset divestments Ø Non-core asset divestments of Rs 1,270 Crs in FY 11 taking the total to Rs 3,070 Crs till date Ø Divested approx 70% of originally intended amount (Rs 4,500 Crs ex-wind power) Ø Divestment target enhanced - total non core assets / businesses divestment basket scaled upt
Slide 15: Execution
Execution Area in msf Region Q4 11 Q3 11 Q4 10 Gurgaon 21 22 21 Super Metro 7 7 8 Rest of India 10 11 10 For Rent Co 15 16 17 53 56 56 Ø Strong execution performance - deliveries of approx. 7 msf in FY 11( Q4 FY 11 – 3.4 msf) Ø Delivery momentum in FY 12 would increase to > 12 msf spread across Gurg
Slide 16: Land Resources as on 31st March 2011
Land Resources as on 31 st March 2011 Area ( msf ) Other Land Hotel Land G.Total Gross Area – as on 1 st Jan 2011 388 11 399 Less : Projects Disposed off ( Net ) 12 0 12 Less : Handed over / Business Proposition changes 16 3 19 Net Land Bank - as on 31 st-March 2011 359 8 367 Break up of 367 msf of
Slide 17: Profit & Loss Summary – Q4 FY11
Profit & Loss Summar y – Q4 FY11 Q4 FY 11 vs Q3 FY 11 Ø Sales (incl Other Income) at Rs 2870 Cr, compared to Rs 2594 Cr. Ø Net profit at Rs 345 Cr , as against Rs 466 Cr Ø EBIDTA margins at 29% versus 50% , after adjusting for a one time cost reset due to input price inflation of Rs 475 crs. All fig
Slide 18: Profit & Loss Summary – FY11
Profit & Loss Summar y – FY11 FY 11 vs FY 10 Ø Sales (incl Other Income) at Rs 10,145 Cr, compared to Rs 7,851 Cr. Ø Net profit at Rs 1,640 Cr , as against Rs 1,720 Cr Ø EBIDTA margins at 42% versus 50% , after adjusting for a one time cost reset due to input price inflation of Rs 475 crs. Ø YTD Tax
Slide 19: One time impact in Q4 FY11 due to inflationary pressures
One time impact in Q4 FY11 due to inflationar y pressures Ø FY 11 Ø Whilst budgeted costs have kept pace on a quarterly basis with inflation, however unabated and sustained inflationary pressures in H2 led to a one time reset of budgeted costs to the tune of approx Rs 475 Crs Ø Cement, steel ,labour
Slide 20: Consolidated P&L – Q4 & FY11
Consolidated P&L – Q4 & FY11 Q4 FY11 (Audite d) Q4 FY10 (re view ed) Q3 FY11 (review ed) Yea r ended FY11 Percentage Percentage of Percentage of Percentage of Sl.No. Consolidated Financials Rs. Crs. Rs. Crs. Rs. Crs. Rs. Crs. of Total Total Revenue Total Revenue Total Revenue Revenue A) 1 Sales and
Slide 21: Consolidated Balance Sheet – FY11
Consolidated Balance Sheet – FY11 All fi gure s in Rs. Crs As a t P a rti cul a rs 31-Ma r-11 31-De c-10 31-Ma r-10 (Audi te d) (Re vie w e d) (Audi te d) SOURCES OF FUNDS S ha re ho lde rs' fund s Capital 2,150 2,150 6,259 Reserves and s urplus 24,182 24,406 24,173 26,332 26,556 30,433 Minority Int
Slide 22: Consolidated Cash Flow
Consolidated Cash Flow Rs in crores For Period ended Particulars Q4 31-Mar-11 31-Dec-10 31-Mar-10 A. Cash flow from operating activities: Net profit before tax 231 2,000 1,769 2,505 Adjustments for: Depreciation 166 631 465 325 Loss/(profit) on sale of fixed assets, net (79) (68) 11 (58) Provision f
Slide 23: Thank You
Thank You 23