DLF (DLF) Q4 10/11 earnings summary

Executive summary

• FY11 consolidated revenue rose 29% to ₹10,144 crore; EBITDA increased 10% to ₹4,337 crore, while PAT after minority interest and prior-period items fell 5% to ₹1,640 crore.

• Strategy prioritized margin protection, stable growth, execution, cash-flow generation, land-bank rationalization and non-core divestments amid rising costs and tighter liquidity.

Financial highlights

• Consolidated revenue ₹10,144 crore vs ₹7,851 crore YoY; EBITDA ₹4,337 crore vs ₹3,939 crore; PAT ₹1,640 crore vs ₹1,720 crore.

• EBITDA margin declined to 42% from 50%; EPS was ₹9.66 vs ₹10.13, reflecting input inflation, higher finance costs and depreciation.

• Standalone turnover rose to ₹4,159 crore from ₹3,220 crore; net profit increased to ₹1,270 crore from ₹765 crore.

• Consolidated gross debt was ₹23,990 crore vs ₹21,677 crore; cash and bank balances rose to ₹1,346 crore from ₹928 crore.

Outlook and guidance

• FY12 planned development launches of 10–12 m.s.f., weighted to plotted developments and luxury homes; volume moderation to continue in high-cost, lower-margin projects.

• Commercial leasing target: 2.5–3 m.s.f.; focus on higher rentals and leasing semi-finished and ready-to-occupy space before new construction.

• Non-core divestment target raised to ₹10,000 crore cumulatively; ₹6,000–₹7,000 crore expected over 2–3 years, primarily for debt reduction.

• Operational cash flows, working-capital efficiency and moderated land aggregation and capex targeted to support debt reduction.