DLF (DLF) Q4 15/16 earnings summary

Executive summary

• FY16 consolidated revenue rose 20.21% YoY to ₹9,819 crore and EBITDA increased 24.91% to ₹4,426 crore; net profit rose 1.69% to ₹549 crore.

• Completed over 14 msf of properties during FY16; close to 20 msf targeted for delivery over the next few quarters.

Financial highlights

• Consolidated revenue ₹9,819 crore vs ₹8,168 crore; EBITDA ₹4,426 crore vs ₹3,543 crore; net profit ₹549 crore vs ₹540 crore.

• Consolidated EPS ₹3.08 vs ₹3.03; finance costs rose to ₹2,615 crore from ₹2,304 crore and depreciation, amortisation and impairment to ₹778 crore from ₹545 crore.

• Consolidated exceptional items were a net loss of ₹78.6 crore, including ₹16.0 crore of capital-project impairment and ₹47.5 crore loss on a project sale.

• Standalone results included a ₹561.0 crore exceptional profit on sale of DLF Place, Saket, partly offset by a ₹47.5 crore project-sale loss.

Outlook and guidance

• FY16 operating targets were met despite strong headwinds; deliveries of close to 20 msf were expected over the next few quarters.

• Rental income expected to strengthen; limited office supply in Gurgaon was expected to support near-term rental appreciation.

• Medium-term strategy: focus on core markets, timely execution, high-quality long-term assets and reducing residential-attributable debt.