DLF (DLF) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue fell 17% YoY to ₹8,168 crore; net profit declined 16% to ₹540 crore and EPS was ₹3.03.

• Operations combined a 46 msf development pipeline with a 29.4 msf leased portfolio generating ₹2,200 crore in annuity income.

Financial highlights

• Consolidated EBITDA was ₹3,543 crore, down 11% YoY from ₹3,977 crore; revenue was ₹8,168 crore versus ₹9,790 crore.

• Net profit after tax, minority interests and prior-period items was ₹540 crore versus ₹646 crore; EPS was ₹3.03 versus ₹3.65.

• Finance costs declined to ₹2,304 crore from ₹2,463 crore; revenue costs fell to ₹3,285 crore from ₹3,880 crore and staff costs to ₹349 crore from ₹576 crore.

• Consolidated exceptional loss was ₹67.87 crore, including a ₹38.38 crore capital-project impairment and ₹29.49 crore project-sale loss.

Outlook and guidance

• Strategy prioritizes core geographies, premium and luxury residential products, lease growth, infrastructure and a conservative capital structure with lower debt.

• REITs are viewed as a route to monetize annuity assets and recycle capital while retaining control; an offering was expected during FY16, potentially including DLF.

• Capital expenditure will continue on existing office, SEZ and retail projects, with additional retail development planned near to medium term.

• Residential demand showed early improvement; escalation clauses in some development projects are intended to partially mitigate commodity and labour cost inflation.