DLF Company Analysis

Description
DLF and it coverse introduction, history, balance sheet, pnl statement, economic ratios, financial analysis, porters 5 forces model analysis, swot analysis, future projects of DLF

Delhi Land and Finance

CONTENTS
? Introduction

? History
? Balance Sheet ? Profit and Loss Statements

? Economic Ratios
? Financial Statistics and Analysis ? Porter’s 5 Forces Model Analysis ? SWOT Analysis ? Future Projects ? Other Developments ? Gallery

INTRODUCTION
? DLF- Delhi Land And Finance
? India’s biggest real estate developer

? BUILDING INDIA- Mission and vision of company
? Founded as Raisina Cold Storage and Ice Company ? Current chairman- Mr. Kushal Pal Singh – world’s richest

property developer- world’s 98th richest man according to forbes

HISTORY
? Founder- Mr.Raghuvendra Singh on 16 March 1946
? Starting developments in Delhi like Krishna Nagar, Greater

Kailash

? Company acquire land on outskirts like Gurgoan

Awards ? Most trusted brand By reader’s digest- 2008
? Real estate excellence in 2008- Best IPO of the year ? Most diversified real estate developer award by CNBC – 2007

Major milestones

Balance Sheet
Balance Sheet Source of Funds Shareholders Loan funds Deferred tax Application of Funds 1,237,482.37 961,496.90 5,832.90 1,126,914.63 838,640.75 2,894.99 2009 2008

Fixed Asset
Investments Current assets, loans and advances Less : Current liabilities and provisions Net Current Assets

347,325.76
295,631.50 1,871,177.69 309,322.78 2,204,812.17

325,615.92
183,983.00 1,834,158.12 375,306.67 1,968,450.37

Profit & Loss Account
Profit & Loss INCOME
383,904.46 EXPENDITURE 202,817.64 Profit before Tax Tax Expense Net Profit Balance available for appropriation APPROPRIATION Earnings Per Share 181,086.82 26,100.42 154,777.03 328,273.11 328,273.11 9.09 294,053.72 311,792.23 54,352.18 257,459.04 284,386.04 284,386.04 15.48 605,845.95

2009

2008

Economic Ratios
RATIOS Current Ratio Quick Ratio Mar '05 Mar '06 Mar '07Mar '08 Mar '09 1.21 0.74 1.51 1.91 1.75 1.36 2.34 3.28 2.96 3.83

Debt Equity Ratio
Inventory Turnover Ratio Debtors Turnover Ratio Earnings Per Share Fixed Assets Turnover Ratio Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs)

1.65
0.67 7.53 192.98 1.56 4.00 191.34 1,175.12

4.67
2.43 62.46 60.22 1.88 4.00 81.18 252.45

10.37
0.33 11.00 2.65 1.44 2.00 4.31 7.20

0.74
-9.96 15.10 -4.00 18.02 32.24

0.78
-4.95 9.08 -2.00 10.34 16.59

Liquidity Ratio
4.5 4 3.5 3 2.5 2 1.5 1 Current Ratio

Quick Ratio

0.5
0 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Market value ratios
Earnings Per Share
250 200 150 100 50 0 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 Earnings Per Share

Raw Material Costing
Date 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 Revenue 1207.11 3249.24 3651.25 4372.36 3846.34 3744.39 1366.67 Raw material cost 192.08 768.56 896.93 1134.84 1118.41 1180.56 185.61

31.03.09
30.6.09 30.09.09 31.12.09

1122.32
1649.86 1750.94 2025.77

491.36
558.26 384.34 673.3

Raw material cost
1400

1200

1000

800 Raw material cost 600

400

200

0 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 31.03.09 30.6.09 30.09.09 31.12.09

Sales Vs Cost
Date 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 Revenue Expenditure 1207.11 3249.24 3651.25 4372.36 3846.34 3744.39 1366.67 250.92 968.26 1097.03 1523.64 1466.17 1577.85 673.46

31.03.09
30.6.09 30.09.09 31.12.09

1122.32
1649.86 1750.94 2025.77

1019.38
971.15 913.69 1262.46

5000 4500 4000 3500 3000 2500

Revenue Expenditure

2000
1500 1000 500 0 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 31.03.09 30.6.09 30.09.09 31.12.09

Expenditure Variations
Date 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 Employee cost Revenue 23.08 60.62 60.86 141.15 102.47 58.24 120.97 Expenditure 1207.11 3249.24 3651.25 4372.36 3846.34 3744.39 1366.67 250.92 968.26 1097.03 1523.64 1466.17 1577.85 673.46

31.03.09
30.6.09 30.09.09 31.12.09

137.46
73.42 117.93 128.93

1122.32
1649.86 1750.94 2025.77

1019.38
971.15 913.69 1262.46

1800

1600

1400

1200

1000 Expenditure 800 Worker cost

600

400

200

0 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 31.03.09 30.6.09 30.09.09 31.12.09

Profit Analysis
Date 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 Net Profit 579.27 2018.55 2144.08 2176.82 1863.97 1935.35 670.79

31.03.09
30.6.09 30.09.09 31.12.09

159.05
396 439.74 467.89

Net Profit
2500

2000

1500

Net Profit 1000

500

0 30.6.07 30.9.07 31.12.07 31.03.08 30.06.08 30.09.08 31.12.08 31.03.09 30.6.09 30.09.09 31.12.09

Market Capital
Market Cap. DLF DB Realty HDIL Indiabulls Real Sunteck Realty Anant Raj Ind Ackruti City 56,402.81 10,953.94 9,673.22 6,998.83 3,994.58 3,927.73 3,802.63 Sales Turnover 2,827.90 1,719.29 45.03 2.17 413.78 440.99 Net Profit 1,547.77 830.43 16.56 9.57 365.84 263.78 Total Assets 21989.88 8,610.98 5,296.28 218.08 3,349.15 2,036.17

Godrej Property
Sobha Developer Parsvnath

3,511.71
3,165.01 2,548.42

974.7 744.04

109.7 113.04

3,001.65 3,756.32

Market Cap. (Rs. cr.)
3% 3% 2%

4%
4% 7% 9%

4%

DLF
DB Realty HDIL Indiabulls Real 54% Sunteck Realty Anant Raj Ind Ackruti City

10%

Godrej Property
Sobha Developer Parsvnath

Porter’s 5 Forces Model Analysis
Potential New Entrants

Bargaining Power of Suppliers

Intra-Industry Rivalry
Strategic Business Unit

Bargaining Power of Buyers

Substitute Products and Services

Threat of new entrants
? Decrease in profitability due to increase in number of

entrants. ? Real Estate Sector needs high working capital. ? This results in high entry barriers. ? Existing firm has an edge over the others due to more industrial experience.

Threat Of Established Rivals
? DLF has 54% of the Market share in the Real Estate

Sector. ? High competition in the sector. ? Established rivals are a threat to upcoming players. ? DLF ,Unitech and Ansals are the major players in this sector.

Bargaining Power Of Suppliers
? Bargaining power of suppliers is low.
? Supplier’s margins have been stagnant despite strong

growth in volumes. ? Large number of suppliers are available ? This leads to shift of contracts when a supplier tries to increases the price.

Bargaining Power of Buyers
? Bargaining power of the buyers is low.

? Difficult to predict the direction and magnitude of

price movement on real estate. ? Forces of demand and supply would always apply ? Price movement would follow accordingly

Threat Of Substitute Product
? No substitutes to the basic product

So, ? No threat of substitute products.

SWOT Analysis
Strength Weakness

Opportunities

Threats

Strength
? DLF has a very good market share of about 54% ? Brand Value ? Huge supplier base ensures a fixed raw material cost ? A well established and firm base in north India

Weakness
? Little or no projects in the other parts of India

? No parallel products to support during times of bad

economy

Opportunities
? Expansion of business in other parts of India

? It can invest more in Power generation projects like

Hydroelectric or Wind power
? Investment in raw material – Backward Vertical

Integration

Threats
? Competitors may try to get more market share through

improved techniques

FUTURE PROJECTS
1. India's largest Exhibition and Convention Centre to be built by DLF in Sector 24, DWARKA, NEW DELHI by 2010. 2. Mall of India is an under-construction shopping mall in Gurgoan, India- area of 4,500,000-square-foot (418,100 m2)- the largest mall ever built in India-one of the largest in the world- estimated cost $ 298 million( 1500 crore INR). 3. DLF Corporate Greens -located next to NH 8, in the upcoming Sector 74A, Gurgaon -Spread over sprawling 25 acres-the project is to be developed on the lines of district centre comprising premium Commercial , Retail and IT spaces. 4. DLF Plaza – Lucknow - catering to office, retail, leisure, entertainment requirements- also internationally acclaimed Hilton Garden Inn hotelarea of 69677 sq mts (approx)- will have 2 levels of basement parking to accommodate approx 800 cars-24 hour security surveillance- equipped with modern fire fighting systems.

OTHER DEVELOPMENTS
Wind Power projects DLF group is the largest owner of wind power plants in India with an installed capacity of 228.7 MW.

Project Locations 1. 150 MW wind power project in Kutch, Gujarat. 2. 11.2 MW wind power project in Gadag, Karnataka. 3. 33 MW wind power project in Osisan and Ratan Ka Baas, Rajasthan. 4. 34.5 MW wind power project in Elavanthi and Panapatti, Tamilnadu.

DLF Constructions

Gurgaon , Haryana

DLF Gateway Tower
Gurgaon

Plaza Tower

SkyLine
Gurgaon

SkyLine
New Delhi

Thank You



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