X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
DLF: 1QFY08 update - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

DLF: 1QFY08 update
Jul 23, 2007

Performance summary
DLF has announced results for the first quarter ended June 2007. Since the company has not provided the financials for the corresponding quarter last year, we have not made any comparisons in our analysis.

Financial Snapshot
Particulars (Rs m) 1QFY08
Income from operations 30,738
Expenditure 8,699
Operating Profit (EBIDTA) 22,039
EBITDA margin (%) 71.7%
Other income 472
Interest 1,077
Depreciation 166
Profit before tax 21,268
Tax 6,037
Minority interest 76
Net profit 15,155
Net profit margin (%) 49.3%
No. of Shares (m) 1704.8
Earnings per share (Rs) 8.9

About the company
Incorporated in 1963 as American Universal Electric (India) Limited, the company was named as DLF Limited in 2006. It has developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in 1949. Since then, DLF has been responsible for the development of many of Delhi’s other well known urban colonies like South Extension, Greater Kailash, Kailash Colony and Hauz Khas. DLF’s primary business is development of residential, commercial and retail properties. The operations span all aspects of real estate development, from identification and acquisition of land, to planning, execution and marketing of projects, through to the maintenance and management of completed developments.

Segment wise performance during 1QFY08?
Segment - Homes: During the quarter, DLF booked revenues for around 0.49 msqft of residential property. At the end of 1QFY08, it had nearly 6.7 msqft of saleable area under construction. As far as new launches are concerned, DLF intends to launch the ‘Chanakyapuri’ (FY09) and ‘Tulsiwadi’ (FY09) projects in the luxury home segment and Bangalore, Chennai, Indore, Cochin and Lucknow properties (to be launched in FY08) in the mid-income home segment.

segment-homes
Particulars Super metros
Sales booked (msqft)
Opening balance 4.83
Booked during the quarter (1QFY08) 0.49
Closing balance 5.32
Under Construction
Opening balance 6.7
New launched 0
Handed over 0
Closing balance 6.7
 
Weighted average sales price 13,179
Weighted average land cost + construction cost 2,171

Segment – Offices: DLF booked nearly 1.41 msqft of leased office space in Gurgaon, Pune, Chennai and Hyderabad in the quarter. According to the company, pre-lease volumes remain robust in Gurgaon and across the country. The current pre-lease for DLF as on June 30, 2007 is at 11.27 msqft.

segment-office
Particulars Super metros
Lease/sales booked (msqft)
Opening balance 8.31
Add: Leased booked during the quarter 1.41
Add: Sales booked during the quarter 2.89
Less: Handed over 1.34
Closing balance 11.27
Under construction
Opening balance 25.8
New launched 5.1
Handed over 1.34
Closing balance 29.56
For sales business
Weighted average sales price 6,131
Weighted average land cost + construction cost 1,793
   
For lease business
Weighted average sales price 49
Weighted average land cost + construction cost 1,923

Segment – Retail: The Vasant Kunj (0.78 msqft) and Saket (0.85 msqft) malls are nearing completion. During the quarter, DLF bought strategic sites in various cities for mall developments. The company currently has 3 malls under construction – Mall of India (Gurgaon), NTC Mills (Mumbai) and the Noida Mall.

Segment - Retail malls
Particulars Super metros
Lease/sales booked (msqft)
Opening balance 3.2
Add: Leased booked during the quarter 0.6
Add: Sales booked during the quarter 0.1
Less: Handed over 0
Closing balance 3.9
Under construction
Opening balance 11.7
New launched 1.2
Handed over 0
Closing balance 12.9
For sales business
Weighted average sales price 23,292
Weighted average land cost + construction cost 5,463
   
For lease business
Weighted average sales price 115
Weighted average land cost + construction cost 4,250

Project under construction: At the end of 1QFY08, DLF had 14 projects under construction with a total saleable area of 35 msqft. The total land bank of the company stood at 615 msqft, compared to 574 msqft in FY07.

Sr. no. Project Area (msqft)
1 W Block Building, DLF Cyber City, DLF City, Phase - III, Gurgaon (W-Block) 1
2 IT Park Building Project, whitefield Road, Mahadevapura, Bangalore (IT Bangalore) 2
3 IT Park Building Project, Plot No 44 & 45, Sector- 62, Noida (U P) - (IT Noida) 1
4 DLF Times Square, Plot NO - 3, Sector-18, Noida, (Noida Mall) 2
5 Magnolias, DLF City Phase - V, Gurgaon 3
6 DLF Tower Project, Jasola, New Delhi 1
7 Oberoi Project, NH - 8, Silokhera, Gurgaon 3
8 NTC Mall Mumbai 2
9 IT Park Project, New Town, P.S. Rajarhat, Distt. 24 Pargana, Kolkata 3
10 GMC, Hyderabad 1
11 Rai SEZ Project, Plot NO TP-2, Industrial Estate, Rai, Sonepat 3
12 IT Park - Hyderabad, Block 2 & 3 Gachibowli, Hyderabad 2
13 IT Park - Chennai 6
14 Mall Of India, NH-8, Gurgaon 5
  Total 35

What to expect?
We had recommended an ‘Avoid’ to the company’s IPO in June 2007. Although, the stock has generated good returns post-listing, we continue to remain cautious on the back high valuations of and execution risk.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2019
Get our special report, Zero To Millions
(2019 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

DLF LTD SHARE PRICE


Nov 16, 2018 03:37 PM

TRACK DLF LTD

  • Track your investment in DLF LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

DLF LTD - HIL LIMITED COMPARISON

COMPARE DLF LTD WITH

MARKET STATS