DLF (DLF) Q4 11/12 earnings summary

Executive summary

• FY’12 consolidated revenue rose 1% YoY to ₹10,224 crore and EBITDA rose 4% to ₹4,499 crore; PAT fell 27% to ₹1,201 crore amid higher construction and borrowing costs.

• Strategy centered on cash conservation, faster execution, premium and plotted development, non-core asset sales, and balance-sheet consolidation.

Financial highlights

• Consolidated revenue was ₹10,224 crore vs ₹10,144 crore in FY’11; EBITDA was ₹4,499 crore vs ₹4,336 crore; PAT after minority interest and prior-period items was ₹1,201 crore vs ₹1,640 crore.

• Consolidated EPS was ₹7.07 vs ₹9.66; reported PAT included ₹1,598 lakh exceptional items and ₹614 lakh net prior-period items.

• Standalone turnover rose to ₹4,583 crore from ₹4,159 crore; net profit fell to ₹1,042 crore from ₹1,270 crore.

• Results were stated after adjusting for ₹229.50 crore of losses from non-core businesses.

Outlook and guidance

• Planned FY’13 development launches and sales target: 10–12 msf; rental leasing target: 2 msf.

• FY’13 non-core divestment target of ₹5,000–6,000 crore, with a similar targeted reduction in net debt.

• Outlook called for challenging conditions over the next few quarters; focus on plotted and premium/luxury housing, timely delivery, operating cash flow, selective capex, and cash preservation.

• Office leasing target was a moderate 2 msf, with emphasis on improving rental yields; a ~1.8 msf Noida mall was expected to open in H2 FY’14.