DLF (DLF) Q4 12/13 earnings summary

Executive summary

• FY13 consolidated results weakened amid lower sales, higher construction costs, elevated interest expense and revised real-estate revenue recognition rules.

• Strategy centered on core development and leasing, selective launches, timely delivery, divestment of non-core assets and debt reduction.

Financial highlights

• Consolidated revenue was ₹9,095.74 crore, down 11% YoY; EBITDA was ₹3,949.11 crore, down 12%.

• Net profit after minority interest and prior-period items fell 41% to ₹711.92 crore; EPS was ₹4.19 vs ₹7.07 in FY12.

• Standalone turnover was ₹3,304.84 crore vs ₹4,582.67 crore; net profit was ₹501.56 crore vs ₹1,041.79 crore.

• Consolidated finance charges increased to ₹2,314 crore from ₹2,246 crore; depreciation, amortisation and impairment rose to ₹796 crore from ₹689 crore.

Outlook and guidance

• Sluggish economic and business conditions expected to persist for the next few quarters; focus on premium housing, execution, cash conservation and cash-flow maximization.

• A healthy development launch pipeline was planned for FY14; leasing was expected to sustain moderate momentum, alongside further non-core asset divestments.

• Strategy targets key metro and Tier I locations, luxury housing and plotted projects; 27 residential projects under construction represented ~36.7 msf of saleable area.