DLF (DLF) Q4 06/07 earnings summary

Executive summary

• FY2006-07 consolidated revenue rose 107% YoY to Rs 4,053.3 crore; net profit after tax and minority interests reached Rs 1,933.6 crore, up 371%.

• Results reflected higher project activity and prices, plus sizeable gains from property and investment sales; sale of office buildings to DLF Assets contributed ~61% of PBT.

• Development potential reached 615 msf as of June 30, 2007; the June IPO raised Rs 9,187.5 crore and shares began trading on BSE and NSE in July.

Financial highlights

• Consolidated revenue Rs 4,053.3 crore vs Rs 1,960.2 crore; PBT before minority interests Rs 2,540.2 crore vs Rs 670.2 crore in FY2005-06.

• Consolidated PAT after minority interests Rs 1,933.6 crore vs Rs 411.0 crore; gross operating profit rose to Rs 2,905.6 crore from Rs 874.5 crore.

• Standalone revenue Rs 1,429.5 crore vs Rs 1,145.0 crore; standalone PAT Rs 405.8 crore vs Rs 227.4 crore.

• Other income rose to Rs 1,419 crore from Rs 124.5 crore, mainly from investment sales and two buildings sold to DLF Assets; total expenditure was 37% of revenue vs 66%.

Outlook and guidance

• Target 50 msf steady-state volume across homes, offices and malls over the next 3–5 years; most required land was already owned.

• Priorities include faster execution, pan-India expansion, affordable housing, new customer segments and scaling hotels, industrials and infrastructure into core businesses.

• Procurement initiatives were expected to deliver over Rs 100 crore of savings in FY2007-08.

• Selective land purchases planned, focused on high value creation or consolidation; funding was arranged or mobilised for ongoing requirements.