DLF (DLF) Q4 07/08 earnings summary

Executive summary

• FY08 marked rapid expansion after the July 2007 IPO; consolidated revenue rose 262% to Rs 14,684 crore and net profit after minority interests rose 304% to Rs 7,813 crore.

• Growth spanned homes, offices, retail, hospitality and infrastructure; management shifted emphasis toward execution and delivery amid a cautious macro outlook.

Financial highlights

• Consolidated EBITDA reached Rs 9,961 crore, up 243% YoY; EPS increased 268% to Rs 46.98 from Rs 12.75.

• Consolidated profit before tax was Rs 9,561 crore; profit after tax before minority interests was Rs 7,822 crore, with final profit after minority interests of Rs 7,813 crore.

• Standalone turnover rose to Rs 6,058 crore from Rs 1,429 crore; standalone PAT increased to Rs 2,574 crore from Rs 406 crore.

• Finance charges were Rs 310 crore, broadly flat YoY despite higher borrowings; construction cost inflation was partly offset by process efficiencies and value engineering.

Outlook and guidance

• FY09 expected to be challenging due to global liquidity and credit stress and domestic inflation; management targeted double-digit growth with cautious execution.

• Priorities include project delivery, cost-effective funding and consolidation, with new initiatives focused on selected prime locations; free cash flow was expected by FY11.

• Construction footprint was targeted to reach ~100 msf by FY09, with operations across 26 cities; Dwarka Convention and Exhibition Centre targeted ahead of the 2010 Commonwealth Games.