On February 14, 2014, DLF Limited, India’s leading real estate company, posted consolidated revenues of Rs 2,590 crore for the quarter ended December 31, 2013, an increase of 16% from Rs 2,225 crore in the second quarter of 2013. EBIDTA stood at Rs 1,144 crore in Q3, increase of 32% as compared to Rs 863 crore in the Q2. Net profit stood at Rs 145 crore, an increase of 45% compared to Rs 100 crore in Q2. The non-annualized EPS for the quarter was Rs 0.81. The normalized Sales, EBITDA and normalized PAT, after excluding the impact of divestment transactions stood at Rs 2,290 crore, Rs.844 crore and Rs. 125 crore respectively.
The Company has met the goals of non-core divestment with the successful consummation of divestiture transactions such as Aman Resorts, Pramerica Insurance JV and final settlement with DDA on the Dwarka land. With this the Company is poised to meet its guidance of reducing the Net debt to Rs.17,500-18,000 crores by end of FY14. As on date, the Net Debt stands at Rs.17,400 crs (approx.). The Company is comfortable with its current Net Debt levels and expects these to continue at similar levels till the economic cycle improves. However, the quality of debt shall continue to improve as annuity incomes continue to grow – currently almost 70% of the net debt is backed by annuity flows.
During the last 2 quarters, the economic environment in the country has further worsened leading to slowdown in demand in all sectors including real estate. The Company expects slow growth and high interest rate environment to continue at least for the next 2 quarters – till middle of FY15. In spite of these economic conditions, the Company shall continue to invest CAPEX in creating high quality annuity yielding assets and invest in the up gradation of land through requisite approvals, consolidation and investment in infrastructure. The Company shall continue to focus on growth through aggressive construction of projects, hence creating high value, high quality real estate products ready to be unlocked as and when the economic cycle turns positive.
