Findings analysis & conclusion

CHAPTER 4
Analysis
&
Findings
54

The balance sheet of DLF for last 5 years has been presented below:-
Balance Sheet of DLF ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 37.77 305.88 340.96 339.44 339.48
Equity Share Capital 37.77 305.88 340.96 339.44 339.48
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 607.16 346.92 10,928.19 12,035.39 12,490.53
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 644.93 652.80 11,269.15 12,374.83 12,830.01
Secured Loans 3,010.93 6,242.81 4,945.91 7,979.97 11,590.19
Unsecured Loans 2.99 526.48 3,440.49 1,635.00 1,047.67
Total Debt 3,013.92 6,769.29 8,386.40 9,614.97 12,637.86
Total Liabilities 3,658.85 7,422.09 19,655.55 21,989.80 25,467.87
Application Of Funds
Gross Block 108.91 365.58 1,533.72 1,968.40 2,002.85
Less: Accum. Depreciation 29.24 37.01 59.34 152.87 273.84
Net Block 79.67 328.57 1,474.38 1,815.53 1,729.01
Capital Work in Progress 456.73 665.03 1,781.79 1,657.73 1,718.51
Investments 1,397.28 769.17 1,839.83 2,956.32 6,558.88
Inventories 472.12 4,281.07 5,928.13 6,627.43 6,533.69
Sundry Debtors 26.55 173.79 930.18 212.89 607.96
Cash and Bank Balance 11.89 19.30 968.03 51.26 171.43
Total Current Assets 510.56 4,474.16 7,826.34 6,891.58 7,313.08
Loans and Advances 2,466.47 4,807.90 10,492.80 11,117.09 11,609.93
Fixed Deposits 115.08 160.19 26.79 709.94 0.00
Total CA, Loans & Advances 3,092.11 9,442.25 18,345.93 18,718.61 18,923.01
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 1,197.33 3,059.67 2,531.21 1,699.75 2,025.90
Provisions 169.61 723.25 1,255.16 1,458.64 1,435.66
Total CL & Provisions 1,366.94 3,782.92 3,786.37 3,158.39 3,461.56
Net Current Assets 1,725.17 5,659.33 14,559.56 15,560.22 15,461.45
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 3,658.85 7,422.10 19,655.56 21,989.80 25,467.85
Contingent Liabilities 1,643.36 3,818.81 3,047.92 4,875.99 7,423.38
Book Value (Rs) 170.76 4.27 66.10 72.91 75.59
55

Profit & Loss account of DLF
------------------- in Rs. Cr.
-------------------
Income
Sales Turnover 953.46 1,101.66 5,496.96 2,827.90 2,729.42
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 953.46 1,101.66 5,496.96 2,827.90 2,729.42
Other Income 191.32 327.48 560.90 1,004.57 491.01
Stock Adjustments -2.58 -8.72 -6.06 0.00 0.00
Total Income 1,142.20 1,420.42 6,051.80 3,832.47 3,220.43
Expenditure
Raw Materials 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00
Employee Cost 16.76 44.82 103.78 71.12 130.57
Other Manufacturing Expenses 577.64 237.75 2,141.29 778.34 889.25
Selling and Admin Expenses 43.65 136.16 146.06 159.03 0.00
Miscellaneous Expenses 6.23 15.77 27.72 56.01 284.23
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 644.28 434.50 2,418.85 1,064.50 1,304.05
Operating Profit 306.60 658.44 3,072.05 1,763.40 1,425.37
PBDIT 497.92 985.92 3,632.95 2,767.97 1,916.38
Interest 146.15 356.25 447.65 809.86 847.24
PBDT 351.77 629.67 3,185.30 1,958.11 1,069.14
Depreciation 3.90 9.44 25.68 114.08 126.05
56

Other Written Off 0.00 0.00 41.79 37.86 0.00
Profit Before Tax 347.87 620.23 3,117.83 1,806.17 943.09
Extra-ordinary items 1.11 1.24 0.36 33.05 -2.32
PBT (Post Extra-ord Items) 348.98 621.47 3,118.19 1,839.22 940.77
Tax 120.47 214.56 543.52 261.00 175.71
Reported Net Profit 227.44 405.77 2,574.40 1,547.77 765.06
Total Value Addition 644.27 434.50 2,418.85 1,064.51 1,304.06
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 1.55 340.97 681.93 339.44 339.48
Corporate Dividend Tax 0.22 57.95 115.89 28.91 11.38
Per share data (annualised)
Shares in issue (lakhs) 377.68 15,294.21 17,048.33 16,972.09 16,973.91
Earning Per Share (Rs) 60.22 2.65 15.10 9.12 4.51
Equity Dividend (%) 40.00 100.00 200.00 100.00 100.00
Book Value (Rs) 170.76 4.27 66.10 72.91 75.59
57

Cash Flow of DLF ------------------- in Rs. Cr. ------------------
Net Profit Before Tax 347.90 620.33 3117.92 1808.77 943.09
Net Cash From Operating Activities -64.36 -2626.83 -1505.81 1365.86 395.24
Net Cash (used in)/from
Investing Activities
-2146.23 -628.34 -6482.00 -1151.17 -2420.00
Net Cash (used in)/from Financing Activities 2251.52 3233.37 8945.90 -437.54 1434.95
Net (decrease)/increase In Cash and Cash
Equivalents
40.93 -21.80 958.09 -222.85 -589.80
Opening Cash & Cash Equivalents 5.11 46.05 24.16 982.25 759.40
Closing Cash & Cash Equivalents 46.05 24.25 982.25 759.40 169.60
58

Key Financial Ratios of DLF ------------------- in Rs. Cr. -------------------
Investment Valuation Ratios
Face Value 10.00 2.00 2.00 2.00 2.00
Dividend Per Share 4.00 2.00 4.00 2.00 2.00
Operating Profit Per Share (Rs) 81.18 4.31 18.02 10.39 8.40
Net Operating Profit Per Share (Rs) 252.45 7.20 32.24 16.66 16.08
Free Reserves Per Share (Rs) 159.66 2.25 63.84 69.75 --
Bonus in Equity Capital -- 87.50 78.51 78.87 --
Profitability Ratios
Operating Profit Margin(%) 32.15 59.76 55.88 62.33 45.29
Profit Before Interest And Tax Margin(%) 26.43 45.40 50.28 42.99 28.68
Gross Profit Margin(%) 31.63 47.79 55.41 58.30 39.82
Cash Profit Margin(%) 20.20 29.04 43.60 44.29 28.67
Adjusted Cash Margin(%) 20.22 29.05 43.60 44.29 27.74
Net Profit Margin(%) 19.86 28.38 42.49 40.36 --
Adjusted Net Profit Margin(%) 19.88 28.39 42.49 40.36 23.87
Return On Capital Employed(%) 13.50 13.15 18.13 11.90 6.96
Return On Net Worth(%) 35.27 62.16 22.84 12.50 5.96
Adjusted Return on Net Worth(%) 35.29 62.17 22.84 12.49 5.98
Return on Assets Excluding Revaluations 4.53 4.27 66.10 72.91 75.59
Return on Assets Including Revaluations 4.53 4.27 66.10 72.91 75.59
Return on Long Term Funds(%) 14.90 15.35 22.40 13.36 7.02
Liquidity And Solvency Ratios
Current Ratio 1.51 1.75 2.34 2.96 5.47
Quick Ratio 1.91 1.36 3.28 3.83 3.58
Debt Equity Ratio 4.67 10.37 0.74 0.78 0.99
Long Term Debt Equity Ratio 4.14 8.74 0.41 0.58 0.97
Debt Coverage Ratios
Interest Cover 3.63 3.22 8.38 3.52 2.45
Total Debt to Owners Fund 4.67 10.37 0.74 0.78 0.99
Financial Charges Coverage Ratio 3.41 2.77 8.12 3.42 2.26
Financial Charges Coverage Ratio Post Tax 2.58 2.17 6.90 3.10 2.05
Management Efficiency Ratios
Inventory Turnover Ratio 2.43 0.33 -- -- --
Debtors Turnover Ratio 62.46 11.00 9.96 4.95 5.62
Investments Turnover Ratio 2.43 0.33 -- -- 0.42
Fixed Assets Turnover Ratio 1.88 1.44 -- -- --
Total Assets Turnover Ratio 0.26 0.15 0.28 -- 0.11
Asset Turnover Ratio 8.75 3.01 3.60 1.46 1.36
Average Raw Material Holding -- -- -- -- --
Average Finished Goods Held -- -- -- -- --
Number of Days In Working Capital 651.37 1,849.36 953.52 1,980.86 2,039.31
Profit & Loss Account Ratios
59

Material Cost Composition -- -- -- -- --
Imported Composition of Raw Materials
Consumed
-- -- -- -- --
Selling Distribution Cost Composition 2.80 5.75 0.83 2.09 --
Expenses as Composition of Total Sales 11.72 18.06 2.18 3.51 4.48
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 0.77 98.30 30.99 23.79 45.86
Dividend Payout Ratio Cash Profit 0.76 96.07 30.19 21.67 39.37
Earning Retention Ratio 99.23 1.72 69.01 76.19 54.28
Cash Earning Retention Ratio 99.24 3.95 69.80 78.32 60.73
AdjustedCash Flow Times 13.02 16.30 3.17 5.66 14.15
Earnings Per Share 60.22 2.65 15.10 9.12 4.51
Book Value 170.76 4.27 66.10 72.91 75.59
60

Competition
Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
DLF 361.30 61,328.21 2,419.21 765.06 25,467.85
DB Realty 431.30 10,491.75 - - 3,416.11
HDIL 254.00 10,414.10 1,491.99 596.65 11,169.45
Oberoi Realty 275.80 9,052.67 - - -
Indiabulls Real 200.05 8,037.82 33.99 22.45 5,296.28
Prestige Estate 216.00 7,086.39 - - -
Godrej Proper 713.80 4,985.89 - - 1,270.33
Sunteck Realty 682.75 4,299.02 16.38 7.24 394.10
Anant Raj Ind 133.75 3,946.91 286.81 237.17 3,592.33
Sobha Developer 366.85 3,597.47 1,114.00 136.70 3,162.51
61

Balance Sheet ------------------- in Rs. Cr. -------------------
DLF DB Realty HDIL Indiabulls Real
Mar '10 Mar '10 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 339.48 243.26 358.84 189.04
Equity Share Capital 339.48 243.26 358.84 51.50
Share Application Money 0.00 0.00 78.00 232.20
Preference Share Capital 0.00 0.00 0.00 137.54
Reserves 12,490.53 2,853.75 6,680.90 3,505.84
Revaluation Reserves 0.00 0.00 0.00 0.00
Networth 12,830.01 3,097.01 7,117.74 3,927.08
Secured Loans 11,590.19 2.39 4,051.72 1.84
Unsecured Loans 1,047.67 316.69 0.00 1,367.35
Total Debt 12,637.86 319.08 4,051.72 1,369.19
Total Liabilities 25,467.87 3,416.09 11,169.46 5,296.27
Mar '10 Mar '10 Mar '10 Mar '09
Application Of Funds
Gross Block 2,002.85 24.24 190.53 24.64
Less: Accum. Depreciation 273.84 8.42 9.83 5.35
Net Block 1,729.01 15.82 180.70 19.29
Capital Work in Progress 1,718.51 0.73 1,389.09 0.00
Investments 6,558.88 1,773.48 596.48 2,507.18
Inventories 6,533.69 97.37 8,033.66 0.00
Sundry Debtors 607.96 0.00 200.72 10.73
Cash and Bank Balance 171.43 43.18 297.33 9.28
Total Current Assets 7,313.08 140.55 8,531.71 20.01
Loans and Advances 11,609.93 1,571.84 1,211.52 2,775.15
Fixed Deposits 0.00 0.00 490.05 0.00
Total CA, Loans & Advances 18,923.01 1,712.39 10,233.28 2,795.16
Deffered Credit 0.00 0.00 0.00 0.00
Current Liabilities 2,025.90 84.76 808.41 18.79
Provisions 1,435.66 1.55 421.69 6.56
Total CL & Provisions 3,461.56 86.31 1,230.10 25.35
Net Current Assets 15,461.45 1,626.08 9,003.18 2,769.81
Miscellaneous Expenses 0.00 0.00 0.00 0.00
Total Assets 25,467.85 3,416.11 11,169.45 5,296.28
Contingent Liabilities 7,423.38 2,023.60 436.45 919.94
Book Value (Rs) 75.59 127.31 196.18 138.14
62

Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '10 Mar '10 Mar '10 Mar '09
Income
Sales Turnover 2,729.42 0.00 1,491.99 45.03
Excise Duty 0.00 0.00 0.00 0.00
Net Sales 2,729.42 0.00 1,491.99 45.03
Other Income 491.01 284.80 106.36 94.73
Stock Adjustments 0.00 32.82 1,591.97 0.00
Total Income 3,220.43 317.62 3,190.32 139.76
Expenditure
Raw Materials 0.00 0.00 0.00 0.00
Power & Fuel Cost 0.00 0.00 0.00 0.00
Employee Cost 130.57 2.47 45.15 18.96
Other Manufacturing Expenses 889.25 31.98 1,914.77 0.30
Selling and Admin Expenses 0.00 0.00 31.86 12.03
Miscellaneous Expenses 284.23 14.06 11.68 2.68
Preoperative Exp Capitalised 0.00 0.00 -69.07 0.00
Total Expenses 1,304.05 48.51 1,934.39 33.97
Mar '10 Mar '10 Mar '10 Mar '09
Operating Profit 1,425.37 -15.69 1,149.57 11.06
PBDIT 1,916.38 269.11 1,255.93 105.79
Interest 847.24 35.65 515.55 79.83
PBDT 1,069.14 233.46 740.38 25.96
Depreciation 126.05 5.42 5.10 2.55
Other Written Off 0.00 0.00 0.00 0.00
Profit Before Tax 943.09 228.04 735.28 23.41
Extra-ordinary items -2.32 0.00 -5.64 0.00
PBT (Post Extra-ord Items) 940.77 228.04 729.64 23.41
Tax 175.71 0.65 132.99 6.85
Reported Net Profit 765.06 227.39 602.30 16.56
Total Value Addition 1,304.06 48.51 1,934.38 33.97
Preference Dividend 0.00 0.00 0.00 13.75
Equity Dividend 339.48 0.00 0.00 0.00
Corporate Dividend Tax 11.38 0.00 0.00 2.34
Per share data (annualised)
Shares in issue (lakhs) 16,973.91 2,432.59 3,588.43 2,575.21
Earning Per Share (Rs) 4.51 9.35 16.78 0.11
Equity Dividend (%) 100.00 0.00 0.00 0.00
Book Value (Rs) 75.59 127.31 196.18 138.14
63

Disinvestment Plans of Non-core assets / businesses
Progress on divestment plan on track
Targeting potential divestment proceeds in excess of Rs 2500 Crores in 15-18 months
Rs. 294 Crs recovered during the quarter
DLF Retail Brands - Wholly owned subsidiary, having paid up equity capital of Rs. 8 Crs, engaged in the
business of retailing various life style / luxury brands. For FY10, the business had revenue’s of
approx.Rs 33 Crs, with losses of approx. Rs 25 Crs (cumulative
losses of approx. Rs.45 Crs)
Preferential allotment to a promoter company at par resulting in
• Infusion of Rs 92 crores by the promoter company to take 92% stake at par via new share allotment
• Dilution of DLF stake from 100% to 8% post promoter infusion
• Rationale - identified as non-core business, recovers shareholder loans
Aman Resorts
• Operating performance continues to improve as global economic environment stabilizes
• Explore possibilities for strategic partnerships to further strengthen the business model
64

Going Forward Further
strengthening of cash flows / profitability via -
 Right pricing strategy
Budgetary controls
 Value engineering
 Timely execution / deliveries
 Material Inflation could impact EBIDTA margins going forward
 Continue to focus on the Balance Sheet through debt reduction and improving the quality of the debt
portfolio
 Focus on execution and sale of stock in existing projects, with selective launches in ensuing quarters
 Sale of commercial office towers to provide impetus to profitability
 Focus on non-core asset divestment to continue, leading to rationalization of our core real estate portfolio
 Given stable cash flows, Company is comfortable with a debt equity of 0.75x. On a longer term sustainable
basisthis ratio is expected to be lower for FY11 targeting between 0.4x -0.5x
 Well positioned to capture increased momentum in leasing demand provided clarity on the Govt. policy front;
improve leasing seen in Q1
67

Conclusion
• The net profit has decreased from 1547 crores to 766 crores in FY10 as compared to
FY09.
• The company uses generally accepted principles in India.
• The company has initiated strategic and comprehensive portfolio adjustments
concentrating both on real estate assets and non-real estate business,with a view to
exit non-core businesses.
• EBIDTA margins 51% versus 54%.
• The sales has decreased from 2827 crores to 2729 crores in FY10.
• Continue to focus on the Balance Sheet through debt reduction and improving the
quality of the debt portfolio
• Well positioned to capture increased momentum in leasing demand provided clarity
on govt. policy front , improved leasing seen.
69

CHAPTER 6
Suggestions
Or
Recommendations
70

SUGGESTIONS
• DLF should exit from non core business and concentrate on real and non real
estate business.
• DLF should have parallel products in order to support economy during recession.
• DLF should expand their projects to other areas in India so as to compete with
upcoming players such as Ansals and Unitech.
• DLF should enforce expert policies so as to curb serious competition and maintain
its market standing.
71

CHAPTER 7
Limitations
of
the Study
72

Limitations Of The Study
• Time constraint was one of the reason that hindered the study.
• As project is based only on secondary data many factors were excluded from the
study.
• Inadequate information on the topic also limits the study and analysis.
• Only a generalized view is given in the research so as to make simpler for common
man to understand.
73

Bibliography
SITES REFFERED
• www.Wikipedia.com
• www.Ask.com
• www.Google.com
• Dlf official site
• www.moneycontrol.com
LITERATURE REFFERED
• Economic times
• Various catalogues
74

DEPARTMENT OF MANAGEMENT
MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES
Attendance Sheet
Name of the Student :
University Enrollment No. :
Name of the Supervisor from the Industry :
S.No. Date Time Progress
Report
Signature of
the student
Signature of
Supervisor
(Institute)
1
2
3
4
5
6
7
8
9
10
*Minimum (8out of 10) 80% attendance compulsory.
75

Findings analysis & conclusion

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Findings analysis & conclusion

Similaire à Findings analysis & conclusion (20)

Plus de Ashish Aggarwal

Plus de Ashish Aggarwal (9)

Dernier

Dernier (20)

Findings analysis & conclusion