Analyst Presentation

DLF Limited
Q4 & FY10
Analyst Presentation
• The Previous Quarter figures have been regrouped / rearranged wherever necessary to
make them comparable. All figures for the current quarter are unaudited, but reviewed by
statutory auditors
1
SAFE HARBOUR
This presentation contains certain forward looking statements concerning DLF’s future
business prospects and business profitability, which are subject to a number of risks and
uncertainties and the actual results could materially differ from those in such forward looking
statements. The risks and uncertainties relating to these statements include, but not limited to,
risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth,
competition , economic growth in India, ability to attract and retain highly skilled
professionals, time and cost over runs on contracts, government policies and actions with
respect to investments, fiscal deficits, regulation etc., interest and other fiscal cost generally
prevailing in the economy. The company does not undertake to make any announcement in
case any of these forward looking statements become materially incorrect in future or update
any forward looking statements made from time to time on behalf of the company.
2
The Year Gone By……..
FY10 witnessed a sharp revival in demand led by the homes segment. This was a result of :
Lower interest rates & ample liquidity
Better affordability for customers
Higher consumer confidence & business outlook
Positive economic indicators, better growth prospectus & various Government incentives also led to a revival in the commercial
space through an increasing no of enquiries for leasing
Homes
Strong volume growth across super luxury / high-end / mid-income homes
Price increases ranging from 10% to 30% depending on product & location
High-end user demand , speculative demand minimal
Offices - Leasing gaining traction as global economy stabilizes
Retail - Segment stabilizing, prime retail locations witnessing signs of revival, enquiries beginning
Industry Outlook - FY11
Strong GDP growth, buoyant economic indicators & latent demand will help keep the demand sustainable over the
medium to long term
Any marginal increase in interest rates & other monitory / fiscal measures i.e. Service tax etc unlikely to hamper longer
term demand outlook
Volumes in the homes segment to remain buoyant across categories, although price increases will vary from location &
product perspective. Offices to see stronger traction in leasing.
Developers will continue to explore opportunities for strengthening financial parameters i.e. equity raising, unlocking value
from non-core business, etc
3
FY 2009 - 10 .. A Year of Consolidation for the Company
Business Consolidation
Business model restructured along two lines
- 3 Development Companies (DevCo) .i.e. > Gurgaon > Super Metros > Rest of India
- Rental Company (RentCo)
Teams realigned to bring in complete focus on approvals, launches and execution.
Integration of CARAF/ DAL with the Rental business of the Company to create a large portfolio of rental assets
Balance Sheet Consolidation
Consolidation of CARAF/DAL to create a solid base of stable cash flows in the form of rentals
Cash flows from operations improved markedly based on successful launches during the year. This was after providing
for one time pricing benefits to customers and provisioning of cost increases.
Current revenues based on conservative estimates of budgeted costs (given the inflationary outlook on commodities).
Whilst consolidated net debt ( incl. RPS) grew to Rs.16421 Crs, net debt/equity improved from 0.64 to 0.53 .
4
FY 2009 - 10 .. A Year of Consolidation (Cont..)
Business Operations
DevCo
Against a target of selling 14-15 msf, the Company achieved sales of 12.5 msf while keeping a strong focus on
profitability & margins
The Company’s strategy in delaying launches till all approvals are in place was successful. Also the focus on luxury
& City Center premium housing contributed strongly during the year
Gradual price increases were taken during the year, depending on product & location in order to enhance margins
and maintain demand momentum
RentCo
The Company continues to see improvement in the Commercial leasing environment in the form of enquiries on
sequential quarter basis
As indicated a year back, the Commercial segment will take a few more quarters to reach levels of anticipated
growth.
Lease rentals in the Retail segment are witnessing signs of stability; early signs of revival with increasing enquiries
5
Performance of the Company – FY 2009-10
Sales Performance :
Region / Heads City
Area Sold
( msf )
Avg.
Sales Value Realisation (
( Rs. Crs )
psf )
Super Metro
Delhi
4.56
4.21
3300
7838
Gurgaon
DLF City & New Gurgaon
3.50
3.12
2550
8173
Rest on India
Panchkula, Banglore & Goa
5.17
3.90
950
2439
Existing Stock
New Gurgaon, Kochi & Indore
0.00
1.32
350
2652
13.23
12.55
7150
5699
Total
Area
Launched
( msf )
Sales Performance
Sales versus launch for FY 10 : 85%
12.5 msf sold versus plan of 14-15 msf for the year
Average ASP of Rs 5700 psf & a total sales value of Rs 7150 Cr for the 12.6 msf sold
Debt
Repaid > Rs. 5500 Crs during the year against mandatory payment of Rs.3549 Crs ( improving quality of debt via
lower cost & higher maturity)
All commitments towards financial institutions / banks met in time without seeking any extension or restructuring.
Intense focus on cashflow maximization and overhead cost control.
6
Performance of the Company – FY 2009-10 (Cont…)
Non Core Business ~ Unlocked Rs. 1800 Crs during the year keeping a judicious balance between value maximization &
short to medium term outlook. Wind Power business with an established market value of Rs1000 Crs retained.
DAL / CARAF & DLF Integration
Combined DLF rental business with CARAF/DAL removing the perceived conflict of interest & establishing a rental
flagship company in line with Company’s strategy to increase the stable annuity proportion of income
Execution Capabilities : 21 msf added to construction during the year
Project Under Construction
S.
No.
1
2
3
4
Residential Projects
Super Metros
Gurgaon
ROI (North & South)
Rent Co.
Total
Const. Status
as on 31/03/09
Mn./Sqft
09-10
Addition/
Handed over
during 09-10
Mn./Sqft
Const. Status
as on 31/03/10
Mn./Sqft
2
8
7
18
3
13
5
(1)
6
21
12
17
35
21
56
7
Performance Scorecard – FY 2009 - 10
Goals FY 2009-2010
Performance 2009-2010
Luxury
0
1
City Center
7
6.5
Mid – Income
8
5
15
12.5
√
√
√
√
3549 Cr
5600 Cr
11.9% (Dec 2008)
10.5%
0.40
0.53
5500 Cr
1800 Cr
Business
DevCo Sales
TOTAL
DAL / CARAF consolidation
Business restructuring (DevCo & RentCo)
Debt
Debt re-payments during the year
Interest Costs
Net Debt / Equity (incl. RPS)
Divestment of non-core assets*
* Wind Power business with an established market value of Rs1000 Crs retained
8
Performance of Company – Q4 FY10
DevCo:
3.6 msf sales booked
Capital Greens, Phase – III, Delhi - 0.2 msf
DLF Valley, Panchkula – 2 msf
New Gurgaon, Bangalore, Goa – 0.4 msf
Gurgaon Phase V – 1 msf
RentCo: 0.7 msf of leasing versus 0.4 msf in Q3 FY10. New leasing volume picking up gradually, few transactions have taken place
and interest / number of enquiries have been steadily improving.
Divestment of non-core assets - Rs. 566 Crs
Scale up in execution - Construction of approx. 5.4 msf commenced in Homes ( 2 msf Capital Greens – Delhi, 0.5 msf SIEL & 2.8
msf BTM Extn. Banglore ). Total area under construction presently stands at ~ 56 msf
9
Profit & Loss Summary – Q4 FY10
Q4 FY 10 vs Q3 FY 10
Sales(incl Other Income) at Rs 2146 Cr, compared to Rs 2152 Cr.
Net profit at Rs 514 Cr , as against Rs 468 Cr ( Excl Prior Period Adjustment of 87 Crs)
EBIDTA margins at 53% versus 45%
All figures in Rs. Crs
Particulars
Q4 - 10
Q3 - 10
Change
Q4 - 10
Q4 - 09
Change
Sales
2146
2152
0%
2146
1351
59%
EBIDTA (Core Operations)
1222
1020
20%
1222
737
66%
EBIDTA ( Consolidated )
%
1152
53%
969
45%
19%
1152
53%
686
51%
68%
PBT ( Cosolidated )
742
633
17%
742
523
42%
PAT
514
468
10%
514
159
223%
10
Consolidated P&L – Q4 FY10
Q4 FY10 (reviewed)
Sl.No.
A)
1
2
B)
1
2
3
Consolidated Financials
Percentage of
Total Revenue
Rs. Crs.
Sales and Other Receipts
Other Income
1,994
152
Total Income(A1+A2)
2,146
Total Expenditure(B1+B2+B3)
Construction Cost
Staff cost
Other Expenditure
994
607
119
268
Q4 FY09 (reviewed)
Rs. Crs.
Percentage of
Total Revenue
46
28
6
12
1,351
968
578
137
253
72%
Year Ended FY10 (reviewed)
Percentage of
Total Revenue
Rs. Crs.
2,026
126
1,122
229
100%
Q3 FY10 (reviewed)
100%
2,152
72
43
10
19
1,182
796
129
258
57%
Percentage of
Total Revenue
Rs. Crs.
7,421
433
100%
55
37
6
12
FY 2008- 09(Audited)
Rs. Crs.
Percentage
of Total
Revenue
10,035
396
7,855
100%
10,431
100%
3,920
2,584
469
867
50
33
6
11
4,431
3,229
454
748
42
31
4
7
63%
67%
69%
C)
Gross Profit Margin(%)
D)
EBITDA (D/A1)
E)
EBIDTA ( Margin)
F)
G)
Financial charges
Depreciation
315
95
15
4
162
52
12
4
257
80
12
4
1,108
325
14
4
H)
I)
Profit/loss before taxes
Taxes expense
Net Profit for the period (before prior period
adjustments)
Minority Interest
Profit/(losss) of Associates
Net Profit for the period (before prior period
adjustments)
Prior period expense/(income) (net)
Net Profit
742
236
35%
11
169
13%
633
168
29%
8
2,501
696
32%
9
5,206
687
50%
7
506
24%
169
13%
464
22%
1,806
23%
4,519
43%
0
0
(10)
(1)
3
(4)
0
(0)
10
1
158
463
J)
K)
L)
M)
N)
O)
1,152
54
384
53%
3
5
514
87
426
4
20%
28
969
28%
158
12%
45
3,935
45%
(5)
468
50
50%
0
0
1,816
(0)
22%
6,000
87
1,729
58
57%
555
239
(28)
(21)
5
2
0
0
4,470
1
22%
1
4,469
0
43%
Note :
1
Construction Cost Includes Cost of Land, Plots and Constructed Properties and Cost of Revenue-others
2
Gross Profit Margin = (Total Income - Construction Cost) / Total Income
Above figures includes losses from non-core businesses .i.e. Hotels & the DLF Pramerica Life Insurance businesses
11
Consolidated P&L – FY 11
EBIDTA at steady state level.
Any variability in FY11 EBIDTA due to delayed launches, seasonality or inflation in EBIDTA will be at
best a short term negative.
Successful paring down of costs ( including interest and overheads) and tax efficiency will be the prime
driver of growth in profitability
Volume based operations will have a focus on EBIDTA margins within an acceptable steady state
range.
12
Consolidated Balance Sheet – Q4 FY10
31-Mar-10
( Rs. Crs )
31-Dec-09
31-Mar-09
6259
24513
30772
1735
23765
25500
1735
22419
24154
Minority Interests
629
629
634
Loan funds
Secured loans
Unsecured loans
19302
2375
14684
2484
13262
3058
SOURCES OF FUNDS
Shareholders' funds
Capital
Reserves and surplus
Deferred tax liabilities (net)
262
53,340
43,297
41,108
APPLICATION OF FUNDS
Fixed assets
Gross block
Less: Depreciation
Net block
Capital work in progress
17874
1326
16548
11182
9466
894
8572
5783
8486
574
7912
5688
Investments
5520
2975
1403
Goodwill on consolidation
1267
2007
2265
0
80
41
12412
1666
913
8600
4483
28074
11550
1983
814
8329
8263
30939
10928
2165
1196
9712
7622
31623
5466
3785
9251
18823
53340
3430
3629
7059
23880
43297
4140
3684
7824
23799
41108
Deferred Tax Assets
Current assets, loans and
advances
Stocks
Sundry debtors
Cash and bank balances
Loans and advances
Other Current Assets
Less :
Current liabilities and provisions
Liabilities
Provisions
Net current assets
13
Consolidated Balance Sheet – FY 10/11
Net worth as on 31st March 2010 has increased by Rs 5272 Crs due to retained profits and
consolidation of CARAF / DAL
Post adjustment of the net worth and purchase of other RPS ( Redeemable preference shares), the
debt/equity ratio is expected to be in the range of 0.65x – 0.75x
With the purchase of DSIPL/SC Asia CCPS for Rs 3085 Crs in the month of April 10, the cash position
shall get adjusted accordingly
Expected debt/equity as on June 30, 2010 should be in the range of 0.65x -0.75x
Expected debt/equity as on March 31, 2011 should be in the range of 0.4x -0.5x
The Other Current Assets as on 31st March 2010 have decreased by Rs 3780 Crs. In this, the
receivables related to DAL of Rs 3548 Crs have been adjusted accordingly post the consolidation of
CARAF/DAL.
14
Cashflow Statement – Q4 FY10
A.
Particulars
Cash flow from operating activities:
Net profit before tax
Adjustments for:
Depreciation
Loss/(profit) on sale of fixed assets, net
Provision for doubtful debts/unclaimed balances written back
Loss/(profit) on sale of current Investments
Amortisation cost of Employee Stock Option
Interest/gurantee expense
Interest/dividend income
Operating profit before working capital changes
Adjustments for:
Trade and other receivables
Inventories
Trade and other payables
Taxes paid
Net cash (used in) / from operating activities
B.
C.
Cash flow from investing activities:
Sale/Purchases of fixed assets(net)
Interest/Dividend received
Sale/Purchases of Investment(net)
Net cash used in investing activities
Cash flow from financing activities:
Proceeds/(repayment) from long term borrowings (net)
Proceeds from issuance of preference shares
Proceeds of short term borrowings (net)
Interest paid
Dividend Paid
Increase in share capital
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Opening cash and cash equivalents
Closing cash and cash equivalents
Net Increase / (decrease)
Difference
Quarter ended
31-Mar-10
Period ended
31-Mar-10
Period ended
31-Dec-09
Year ended
31-Mar-09
726
2,486
96
15
1
(7)
5
315
(102)
326
(63)
103
(9)
41
1,108
(259)
1,049
3,975
(663)
2,452
(597)
6,216
3,733
2,684
5,787
4,991
(843)
1,631
(908)
1,016
(180)
(821)
(311)
(3,341)
(753)
(407)
(1,112)
8,604
2,388
(14,401)
193
(2,073)
(16,281)
(635)
113
(1,364)
(1,885)
(3,249)
102
(443)
(3,590)
6,049
4,524
(644)
(2,151)
(385)
1,163
3,630
7,393
(284)
(355)
(1,298)
(365)
(856)
(353)
482
(1,601)
(372)
304
2,442
(972)
1,096
812
(284)
1,096
743
(353)
2,069
1,096
(972)
(13,766)
80
(709)
(14,396)
4,886
4,524
(289)
(853)
(20)
8,248
68
743
812
68
1,760
230
(78)
102
(2)
36
793
(157)
5,200
239
4
61
(75)
38
555
(235)
175
15
Impact of CARAF / DAL consolidation on the B/S and Cashflow
Share Capital has gone up by Rs 2927 Crs on account of CCPS held by DAL investors and CCPS of Rs
1597 Crs issued by DCCDL to the promoters
Loans have increased by Rs 2121 Crs on account of loans held by CARAF / DAL
Gross Block / CWIP has increased by Rs 12900 Crs primarily on account of –
Rs 7597 Crs towards addition to Fixed Assets due to assets held CARAF / DAL
Rs 5303 Crs towards CWIP due to recognition of assets under construction by DAL in its books
Other current assets have reduced by Rs 3780 Crs out of which Rs 3548 Crs are on account of
elimination of assets & liabilities during consolidation. However DLF receivables from DAL continue to
exist in the standalone entities and will be settled between the entities.
Current liabilities have increased by Rs 613 Crs on account of integration
Capital reserves have increased by Rs 1151 Crs on account of integration
16
Debt Position – Q4 FY10
All Figures in Rs. Crs
DEBT STATUS
Gross Opening Debt ( as on 1st April-09 )
Gross Opening Debt ( as on 1st Jan-10 )
Less : Repaid during Q410
New Loans availed during Q4 10
Net Debt Availed
Debt. Increase due to consolidation
Net Increase in Debt
Gross Debt position ( as on 1st April-10 )
Less : Cash in hand
Equity shown as Debt / JV Co. Debt
Net Debt
Add : Pref. Shares
Total Obligations
16,320
17,168
(1400)
3,788
2,388
2,121
4509
21,677
5503
1353
6856
14,821
1,600
16,421
VS 12830 Crs was at 31st Dec-09
Redemption Value
As against the mandatory debt payable in FY 10 of Rs 3549 Cr, the Company has paid ~ Rs 5600 Cr (improving
quality of debt vis-à-vis lower cost and higher maturity)
Average cost of debt has declined from 11.9% in Dec 2008 to 10.5% in March 2010
17
Debt De-Leveraging Plan
Continued Focus on de-leveraging continues with monies from operational cash flows & non-core asset divestments
Plans ongoing for achieving the divestment targets of non-core assets / businesses over the medium term
Substantially improved cash flows from operations given the success of recent launches as well as slew of launches yet to be
done
With commencement of construction of many projects, the cash flows are expected to further improve as installments are
linked to constructions
Reduction in Cost of Debt
Average cost of debt has come down from 11.9% in Dec 2008 to 10.5% in Mar 2010
Current net debt/equity ratio: 0.53
Targeting net debt equity of 0.4x – 0.5x versus a peak range of 0.65x - 0.75x
On-going Strategy
Continue to use all free cash flows to reduce debt on an accelerated basis
Keep improving the tenure and quality of debt
Keep reducing cost of debt by replacement with lower cost debt
18
Divestments Plans of Non-core assets / businesses
Divestments of non core assets as a strategy is to focus more on the core business operations and
not merely as a means to reduce debt. However all cash flows from this process will be utilized to
bring down debt.
Continued focus on divesting non-core assets / businesses continues as before
Asset divestments to be undertaken judiciously and at fair market value and not at distressed values
Postponement / delays more from a timing perspective pending certain regulatory approvals or in expectation of a better deal /
price realization given an improving economic environment
Unlocked Rs.1800 Crs during the year, Rs. 566 Crs in Q4 10
Target in FY 10
Rs 5500 Cr
Achieved
Rs 1800 Cr
Wind Power business retained
Rs 1000 Cr
Target over next 12-18 months
Rs 2700 Cr
Strong visibility on Rs 2700 Crs earmarked for divestments over the next 12-18 months
Dwarka – Rs 800 Cr, TIDCO – Rs 900 Cr
Others – ~ Rs 1000 Cr (deals at an advanced stage for ~ Rs 300 Crs )
19
Business Operations
20
DevCo
Q4-10
Continued sales of Belaire & Park Place under the luxury/ high end segment ~ approx. 1msf sold out
- Sales momentum expected to continue in the next quarter
SBM Phase - III ~ High end Luxury apartments @ Rs. 13,500 psf, 50% sold
DLF Valley Panchkula ~ Booked 1200+ within a week of launch.
Medium Term Strategy – FY11
Mumbai NTC mills project to be launched during the year
Continue to focus on sales of Mid – Income housing projects PAN India
Focus on sales of Homes at City Center locations in Chennai / Kochi at attractive price points
Commercial Complexes – Demand continues to be subdued
Expected Sales Plan in FY 11
Total Sales Bookings
15 – 18 msf
Location(s)
Luxury
1 – 1.5 msf
Mumbai, Delhi
City Center / High End
2 – 3 msf
Chennai, Cochin, Gurgaon
Mid- Income / Value Housing
12 – 14 msf
Gurgaon, Hyderabad, Kochi, Chandigarh, etc
21
DevCo
Development Business
Under Construction (msf)
Particulars
Q4 10
TOTAL
Total mn sqft
Q3 10
Q4 09
50
YTD-10
40
30
Sales Booked (msf)
Opening Balance
Net Booked during Qtr**
Handed Over
Closing Balance*
35.21
3.64
0.00
38.85
27.47
0.78
0.00
28.24
32.82
3.12
0.73
35.21
28.25
12.59
1.56
39.28
Under Construction
Opening Balance
New Launched
Handed Over
Closing Balance
33.40
5.43
0.00
38.83
17.29
1.02
0.00
18.31
31.56
2.57
0.73
33.40
18.31
17.21
1.56
33.95
20
39
33
10
Q3' 10
Q4' 10
Development Potential (Msf)
350
Wt. Avg. Rate ( Sale Price )
Homes
C.Complex
4180
0
2211
6946
5832
7065
5362
11065
300
Homes
C.Complex
1934
0
1736
5806
1839
2270
2269
3685
250
Homes
C.Complex
2246
0
475
1140
3994
4795
3094
7380
Homes
C.Complex
32.74
6.11
Wt. Avg. Rate ( Project Cost )
Margin ( Per sqft )
* Break Up -
326
315
Q3' 10
Q4' 10
200
** Includes 0.44 mn sqft of Cancellations in DLF Towers Shivaji Marg during Q4-10
22
DevCo - Forthcoming Launches
Chandigarh
Gurgaon
Delhi
City Centre
Mumbai
Mid Income
Goa
Hyderabad
Bangalore
Commercial Complexes
Value Housing
Chennai
Cochin
23
RentCo
Current Market Situation
Increased traction in pre - easing activity, however conversion lagging behind enquiries.
Some select markets witnessed a marginal increase in rentals; rental values across locations such as Gurgaon and Noida
stabilized despite addition of new stock due to latent demand in the region.
Retail Malls ~ Prime retail locations saw early signs of recovery as witnessed by the higher number of enquiries.
Company Focus & Medium Term Strategy – FY11
Continue to focus on meeting deliveries of outstanding pre-leases
Providing further services through higher value engineering & meeting customer service requirements
Strengthening delivery mechanism to meet the anticipated demand in the near future
Plans for leasing 3-4 msf of office space during the year
Impetus on increasing current occupancy levels for existing operational malls to 100%
24
RentCo
Rent Co. Business
Under Construction (Annuity)
Q4 10
Total
Total mn sqft
Q4 09
Q3 10
YTD 10
16.93
(7.30)
9.08
0.69
0.00
19.41
17.45
0.00
0.00
(0.05)
0.03
17.42
17.42
(7.30)
9.08
0.76
(0.56)
19.41
Particulars
Leased Status
Opening Balance
Less : DAL Sales ( Exculded )
Add : DAL / Caraf Leasing
Add : Lease Booked during Qtr
Less : Cancellation / Adjustment
Closing Balance
16.52
0.00
0.00
0.42
0.00
16.93
( Msf)
20
Q3
Q4
17
17
18
16
14
12
10
Under Construction
Opening Balance
New Launched / Additions
Less:- Handed Over
Less:- Suspension / Adju
Closing Balance
17.13
0.00
0.00
0.00
17.13
37.18
0.00
0.39
19.11
17.69
17.13
0.00
0.00
0.00
17.13
17.69
0.00
0.56
0.00
17.13
Development Potential (Msf)
93
Wt. Avg. Leasing Rate - Office Building (in Rs.sqft )
- Retail Mall ( in Rs. Sqft )
41
0
71
152
49
141
43
143
91
89
Wt. Avg. Project Cost - Office Building (in Rs.sqft )
- Retail Mall ( in Rs. Sqft )
1858
0
2025
7762
1626
7680
1783
7657
92
90
87
85
Q3
Q4
Note : Leases booked in FY 10 are net of cancellations of approx. 0.5 msf
25
Execution Capability
Proje ct Unde r Construction
(msf)
56
51
Project Under Construction
Punjab
(msf)
Delhi
Gurgaon 61
49
36
Q4 10
62
Uttar
Pradesh
Kolkata
Mumbai
Q1 08
Q1 09
Q3 10
Q4 09
Ongoing Cons truction
Added new projects of ~ 5.43 msf
under construction during the Qtr
Q4 08
Pune
Project Under Const. ( msf )
Hyderabad
Super Metros, 6
Rent Co., 17
Super Metros
Gurgaon
Bangalore
Kochi
Gurgaon, 21
Chennai
ROI (North & South)
Rent Co.
ROI (North &
South), 12
26
Our Land Resources
Other Land
Hotel Land
Grand Total
Area (Mln Sft)
Gross Area (Mln.Sft.)-As on 31st Dec-09
418
12
430
Less:Projects Disposed off (Net)
13
Net Land Bank (as on 31st Mar-10)
COST (Rs./Crs.)
405
12
416
Total Payable as per Q3
1613
2
1615
Less : Paid during Q4
Payable as on 31st-Mar-2010 *
13
29
29
1584
2
1586
Break up of 416 Mln sft of Land Bank available
Dev Co.
Rent Co
Hotel
Total
* Break up of 416 Mln Sft
315
90
11
416
**Projects Under Construction
39
17
56
Notes
1. High Potential & Short / Medium Development Potential not affected by above actions.
2. Projects disposed off (13 mnsqft) relate to Non-core Land Parcels across various locations which do not have any Short/Medium Development
potential and amount recovered thereof is part & parcel of recovery during the F.Y 2009-10
3. Amount payable includes Rs 1533 crs outstanding towards HSIIDC New Golf course land payable over balance 13 half yearly instalments
27
Strategy Going Forward
Maintain EBIDTA at stable levels
Focus on cash flow improvements
Interest cost/ other cost efficiencies
Further strengthen the Balance Sheet through debt reduction and improving the quality of the debt portfolio
Unabated focus on non-core asset divestment to continue leading to rationalization of our core real estate portfolio
Focus on launches across all segments in the residential vertical, after receiving all necessary approvals. Specific focus on city
center premium housing with targeted margins.
Given stable cash flows, Company is comfortable with a debt equity of 0.75x. On a longer term sustainable basis, this ratio is
expected to be substantially lower for FY11
Well positioned to capture any momentum in leasing demand; however stronger traction in leasing is expected in H2 FY11
Given the pipeline of launches during the year and a scale up in execution / construction, operational cash flows are expected to
further strengthen
As a strategy the focus of the Company will be to grow the rental business with reduced gearing and achieve a healthy
contribution to the overall business in the next 2-3 years
With the purchase of 90% of CCPS held by DSIPL/SC Asia, the Company is completely aligned to pursue the best available value
accretive option for its shareholders at the opportunistic time.
28
EXECUTION UPDATE
DELHI PROJECTS
29
CAPITAL GREENS ~ NEW DELHI
hsu
hjdf
Capital Greens – Phase –I, New Delhi
SIEL – Commercial Complex, New Delhi
Capital Greens School Site
SIEL – Commercial Complex,
30
MLCP PROJECTS ~ NEW DELHI
hsu
SNM – MLCP, New Delhi
BKS – MLCP, New Delhi
31
EXECUTION UPDATE
PHASE V PROJECTS
32
PHASE V- DLF CITY , GURGAON
hsu
hjdf
Park Place – DLF Phase V, Gurgaon
Belaire – DLF Phase V, Gurgaon
Magnolias – DLF Phase V, Gugaon
EWS – Park Place
33
EXTERNAL DEVELOPMENT – PHASE V, GURGAON
hsu
hjdf
34
EXECUTION UPDATE
NEW GURGAON PROJECTS
35
NEW TOWN HEIGHTS – NEW GURGAON
hsu
hjdf
NTH – Sector 91, New Gurgaon
Sector 90 EWS, New Gurgaon
NTH – Sector 86, New Gurgaon
NTH – Sector -90, New Gurgaon
36
EXPRESS GREENS & CORPORATE GREENS – NEW GURGAON
hsu
EXPRESS GREENS – M1A, NEW GURGAON
CORPORATE GREEN – SECTOR -74A, NEW GURGAON
37
EXECUTION UPDATE
REST OF INDIA PROJECTS
38
NEW TOWN HEIGHTS ~ KAKANAD
hsu
hjdf
39
GARDEN CITY ~ OMR, CHENNAI
hsu
40
CHENNAI IT PARK, CHENNAI
hsu
41
Thank You
42