Company Update : DLF Ltd By Motilal Oswal Financial Services Ltd
A stellar performance by ‘The Dahlias’ steals the show
Reasonable collections; strong pipeline
Residential performance
* DLF reported bookings of INR121b, up 34%/17x YoY/QoQ (2.4x above our estimate).
* This impressive performance was fueled by healthy sales from the superluxury project ‘The Dahlias’, which stood at INR118b (98%) of pre-sales. Thus, 9MFY25 exceeds the full-year pre-sales guidance.
* The company also witnessed a strong uptick in collections, which increased 23%/31% YoY/QoQ to INR31b. Consequently, OCF rose 67%/53% YoY/QoQ to INR19b. The net cash position was INR45b vs. INR28b in 2QFY25.
* The launch pipeline for FY25 has further increased by INR31b and now stands at INR441b. It is now INR146b higher than the initial guidance of INR295b unveiled in 3QFY24.
* The pipeline beyond FY25 now stands at INR704b vs. INR635b in 2QFY25.
Rental performance (DCCDL)
* The overall occupancy in DCCDL’s office portfolio was flat QoQ and stood at 93% (98% - non-SEZ/87% - SEZ).
* Rental income increased 10% YoY to INR11.9b driven by steady growth across portfolio.
* Net debt declined 3% to INR167b from INR172b in 2QFY25, with net debt to GAV of 0.22x.
P&L highlights
* In 3QFY25, DLF’s revenue came in at INR15.3b; flat YoY/-23% QoQ (10% below estimate). EBITDA dipped 22% YoY/20% QoQ to INR4.0b (13% above estimate), while the margin stood at 26% (flat QoQ; 5pp above estimate). PAT was INR16.3b, 149%/18% YoY/QoQ (103% above estimate, including reversal of deferred tax liabilities (DTL)) while normalized PAT (ex-DTL) was at INR10.6b, 61%/37% YoY/QoQ (32% above estimate).
* In 9MFY25, revenue came in at INR48.7b, up 13% YoY. EBITDA decreased 17% YoY to INR11.3b, striking a lower margin of 23% (9pp below 9MFY24). PAT was INR36.6b, up 103% YoY (including reversal of DTL), while normalized PAT (ex-DTL) was INR24.8b, up 37% YoY.
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