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DLF:Key takeaways
Confident of project launches. DLF reiterated their 4QFY11E target of launching 8 mn
sq. ft across residential and commercial properties. Key projects include (1) super luxury
housing at Greater Kailash, New Delhi of 300,000 sq. ft which DLF has already launched
in January 2011, (2) luxury housing at Marine Drive, Kochi for which all approvals are in
place and is expected to be launched in Feb. 2011 and (3) next phase of plotted
developments in Panchkula, Chandigarh and Gurgaon.
Debt reduction. Debt reduction has been slower-than-expected (both internal and
external) for a variety of reasons – (1) delay in launches and hence cash inflow, (2) slowerthan-
expected disposal of non-core assets and (3) cash flow diverted to extinguishing
preference shares which are higher cost (12% dividend which is also non-tax deductible).
DLF mentioned that FY2012E debt reduction will be back on track with launches picking
up and progress on disposal of a few non-core assets.
Prices. While there was no explicit mention of any visible signs of price decline, prices are
expected to remain flattish from here. DLF reiterated that they will continue to focus on
ensuring margin and increasing sales – launch of plotted development is a case in point.
Mumbai launch is two-three quarters away. DLF indicated that the NTC Mill project
launch (total 4 mn sq. ft) is two-three quarters away as they are finalizing contractors,
design and the launch and construction schedule.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
DLF:Key takeaways
Confident of project launches. DLF reiterated their 4QFY11E target of launching 8 mn
sq. ft across residential and commercial properties. Key projects include (1) super luxury
housing at Greater Kailash, New Delhi of 300,000 sq. ft which DLF has already launched
in January 2011, (2) luxury housing at Marine Drive, Kochi for which all approvals are in
place and is expected to be launched in Feb. 2011 and (3) next phase of plotted
developments in Panchkula, Chandigarh and Gurgaon.
Debt reduction. Debt reduction has been slower-than-expected (both internal and
external) for a variety of reasons – (1) delay in launches and hence cash inflow, (2) slowerthan-
expected disposal of non-core assets and (3) cash flow diverted to extinguishing
preference shares which are higher cost (12% dividend which is also non-tax deductible).
DLF mentioned that FY2012E debt reduction will be back on track with launches picking
up and progress on disposal of a few non-core assets.
Prices. While there was no explicit mention of any visible signs of price decline, prices are
expected to remain flattish from here. DLF reiterated that they will continue to focus on
ensuring margin and increasing sales – launch of plotted development is a case in point.
Mumbai launch is two-three quarters away. DLF indicated that the NTC Mill project
launch (total 4 mn sq. ft) is two-three quarters away as they are finalizing contractors,
design and the launch and construction schedule.
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