DLF (DLF) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue rose 8% YoY to ₹9,790 crore, while EBITDA increased 1% to ₹3,977 crore and net profit fell 9% to ₹646 crore.

• Challenging housing demand and high financing costs weighed on results; net debt declined to ₹18,526 crore from ₹21,731 crore at March 31, 2013.

Financial highlights

• Consolidated EPS was ₹3.65 vs ₹4.19 in FY13; revenue costs rose to ₹3,880 crore from ₹3,356 crore and finance costs increased to ₹2,463 crore from ₹2,314 crore.

• Standalone revenue was ₹3,826 crore vs ₹3,305 crore; net profit was ₹527 crore vs ₹502 crore, including net exceptional loss of ₹390 crore in FY14.

• Standalone profit before exceptional items, tax and prior-period items increased to ₹929 crore from ₹693 crore.

Outlook and guidance

• Demand was expected to begin improving in H2 FY15; planned launches center on premium and luxury housing in Delhi, Gurgaon, Mumbai, Chandigarh Tri-City, Chennai and Bengaluru.

• FY15 capital expenditure was to be funded through selective divestitures, with net debt targeted at similar levels over the medium term.

• Strategy prioritizes core development and leasing, cost rationalization, debt reduction, and selective land replenishment in strategic markets.