India's largest realty firm DLF reported 9% decline at Rs. 131.79 crore in Q3.

Shrikant Kejriwal, Mumbai

10th February 2015

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Replies (12)

Hi Suhail & Pranjal,
Earlier, i heard that Co. will adopt DevCo DLF's development arm. The company had a net debt of Rs 20965 crore as on March 31, 2015 of which about Rs 14000 crore refered to rental business and the rest was towards DevCo.

Sangam, Noida

1st June 2015

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@Sangam,
But the DLF has posted 22% fall in combined net profit at Rs 171.62 crore in the 4th qtr of 2014-15 fiscal, as against Rs 219.68 crore in the year-ago period.

And during the full 2014-15, net profit dropped by 16% to Rs 540.24 crore from Rs 646.21 crore in previous year.

Pranjal, Delhi

1st June 2015

Good morning all,
As per the latest news, India's largest realty firm DLF is looking at closing two private equity deals worth around Rs 1000 crore by September 2015 to part-finance its upcoming housing projects in Chennai and Gurgaon.

Pranjal, Delhi

1st June 2015

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Gud Morning Pranjal,
In February' 2014, the co. had announced to raise over Rs. 3000 crore through divestment of stakes in certain housing projects to private equity players. They are targeting at least two deals in the first half of this fiscal worth Rs. 1000 crore.

Suhail, Delhi-NCR

1st June 2015

True Suhai,
And it is mainly due to sluggish housing sales in last few years, DLF has decided to raise private equity funds at project levels to boost cash flows, Private Equity fund will be the alternative for the cash flow which would have normally come from sales.

Pranjal, Delhi

1st June 2015

@Pranjal,
May be you are right because DLF's sales bookings fell by over 5% to Rs 3850 crore in 2014-15 against Rs 4070 crore in the previous year. Even for the 2015-16 fiscal, DLF has recently given a sales bookings guidance of Rs 3500-4000 crore as the company feels that it would take at least 12 months for the sales momentum to start improving.

Suhail, Delhi-NCR

1st June 2015

@Arun and Suhail,
Company's net profit is falling year-over-year. Yesterday, DLF reported 22 % fall in combined net profit at Rs 171.62 crore in the 4th qtr. of 2014-15 fiscal, as against Rs 219.68 crore in the year-ago period.

Income from operations fell marginally to Rs 1953.69 crore in the January-March qtr, from Rs 1969.45 crore in the year-ago period.

amrendra.k, Bangalore

22nd May 2015

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Right Amarendra,
DLF's net profit dipped by 16% to Rs 540.24 crore in 2014-15 from Rs 646.21 crore in the previous year.

Income from operations dipped by 8% to Rs 7648.73 crore in last financial year from Rs 8298.04 crore in 2013-14. Total revenue stood at Rs 8168 crore in 2014-15 financial year, down by 17% from Rs 9790 crore in the previous year.

Arun Bhat, Bhiwadi

22nd May 2015

Hi Amarendar and Preeti,
Do you think that in the coming days company will clear it's all debt? What is the gross sale booking in 2014-15?

Suhail, Delhi-NCR

22nd May 2015

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Hi Suhail,
The company is looking at all possibilities to further improve the debt profile which includes issuance of CMBS's (Commercial Mortgage Backed Securities) or debentures. Earlier, the company had announced plans to raise about Rs. 3600 crore in 2014-15 as against 3.74 million sq-ft. amounting to Rs. 4070 crore in the previous fiscal.

Arun Bhat, Bhiwadi

22nd May 2015

Thanks Arun,
What will be the company's next step towards their debt? Earlier, it came to know that the company is planning to form REIT. What is the progress report on REIT?

Suhail, Delhi-NCR

22nd May 2015

Well Suhail,
As per the current report, the company is in Dialogue with few private equity players to raise funds in the some new housing projects. On the formation of REITs, DLF said that it plans to form 2 REITs platforms to strategically generate income from almost 30 million sq-ft. of office and retail assets.

Arun Bhat, Bhiwadi

22nd May 2015

Hi Everybody,
Once again there is a bad news for the top most realty firm of India DLF Ltd. As per the current news, company's current debt rose by Rs. 628 crore while its sales booking fell by over 5% for the entire fiscal.

Preeti Kher, Delhi-NCR

22nd May 2015

Comment

Gud Morning Preeti,
I think bad luck is chasing the company for long time. But DLF is still confident that the housing sales will improve and it would take at least 12 months. They further expects that their sales to be low in the current fiscal (2015-16).

Amarendar, Faridabad

22nd May 2015

I think so. Can you tell me what is the total debt of the company from different sources?

Preeti Kher, Delhi-NCR

22nd May 2015

Well Preeti,
According to an analyst presentation, DLF's net debt stood at Rs. 20965 crore as on 31st March 2015 and it is up by 628 crore from Rs. 20336 crore at the end of the October-December quarter.

As per the company analysis Rs. 14000 crore relates to rental business and the rest towards development arm.

Amarendar, Faridabad

22nd May 2015

And the deadline to convert these alternation of the compulsorily convertible preference shares into shares was March 19 this year, but the same could not be executed in view of SEBI's order in October 2014 banning DLF and 6 executives from capital market for the next 3 years.

Pranjal, Delhi

18th March 2015

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@Pranjal,
As per DLF Chief Financial Officer Ashok Tyagi, the promoters decided to hold off the CCPS conversion as only few days were left to meet the March 18 deadline.

H further added that the future course of action on the compulsorily convertible preference shares conversion would be decided after the recommendation of the audit committee set up by the DLF to suggest growth of its rental business RentCo.

Pranjal, Delhi

18th March 2015

The audit committee was also asked to create the perfect structure for rental business in order to improve efficiency and control and to reduce conflicts of interest, if any, proper allied persons/entities in keeping with best corporate governance practices.

Lohit Raj, Delhi-NCR

18th March 2015

Thanks Pranjal,
Do you know how much the company will save annually? And How much preference share issued to DLF Promoters by DLF Cyber City Developers?

Kashif Ahmed, Delhi-NCR

18th March 2015

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Well Kashif,
The annual savings of the company due to reduction in CCPS coupon rate from (9-0.01)% will be approximately Rs 175 crore.

DLF Cyber City Developers had then issued compulsorily convertible preference shares worth Rs 1597 crore to DLF promoters.

Pranjal, Delhi

18th March 2015

Seeing the current market scenario Realty Major DLF has decided to save about Rs 175 crore annually after promoters decided to cut coupon rate on securities held by them in realty major's subsidiary from (9- 0.01)%.

Kashif Ahmed, Delhi-NCR

18th March 2015

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Yeh, last week, DLF promoters adjourned till March 2016 chanfe of the compulsorily convertible preference shares held in DLF's arm DLF Cyber City Developers Ltd. Promoters also cut the coupon rate from ( 9-0.01)%.

Pranjal, Delhi

18th March 2015

As per report total income decreased to Rs 2079.82 crore for the quarter ended December 31, 2014, from Rs 2590.2 crore for the quarter ended December 31, 2013.

DLF has a land bank of about 295 million sq-ft, of which 50 million sq-ft is under development.

Tamal, Delhi-NCR

10th February 2015

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Moreover lower sales, DLF's net profit fell because its other income dropped to Rs 123 crore during October-December quarter of this fiscal from Rs 531.78 crore in the year-ago period.

Finance cost, too, increased to Rs 648 crore from Rs 633 crore during the period under review.

Anwar Mohammed, Delhi-NCR

10th February 2015

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It means their income from operations fell by 5% at Rs 1956.72 crore for the Q3 of this fiscal from Rs 2058.42 crore in the corresponding period of the previous year.

Tamal, Delhi-NCR

10th February 2015

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Yes, On Monday, 8th of February'2015, DLF reported 9% decline in its consolidated net profit at Rs 131.79 crore for the quarter ended December on lower sales. Its net profit stood at Rs 145.29 crore in the year-ago period.

Anwar Mohammed, Delhi-NCR

10th February 2015

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