Presentation on a financial analysis of DLF, India Ltd. as a part of coursework Course - MMS/MBA Semester - 1 Subject - Managerial Economics

1. Economics Presentation
on
on
By :
• Varad Potnis …116
• Mitul Shah …117
• Keyur Mehta …118
• Aamir Dange …119

2. Contents
• Introduction
• Sectors of Operation
• Company Values
• Development Overview
• Major Projects
• Mergers - JVs
• Financial Analysis
• Ratio Analysis

3. Introduction
• What does DLF stand for?
• When was it founded?
• What does it do?

4. Sectors of Operation
Development Business
• Homes
• Super Luxury, Luxury and
Premium segments
• Commercial Complexes
• Office and Retail Spaces
Annuity Business
• Office
• Retail
• IT Parks
Outright SaleOutright Sale LeasingLeasing

5. Company Values
Vision
Statement
To contribute significantly
to building the new India
and become the world’s
most valuable real estate
company.
Mission
Statement
To build world-class real-
estate concepts across six
business lines with the
highest standards of
professionalism, ethics,
quality and customer
service.

6. Company Values
• Sustained efforts to enhance customer value and
quality
• Ethical and professional service
• Compliance and respect for all community,
environmental and legal requirements.

7. Development Overview
• 308 msf of planned projects
• 55 msf of projects under construction
• Presence across 15 states - 24 cities in India.

8. DLF’s India
Presence as of 2014

9. Major Projects
DLF Mall of India
• Gross Leasable Area of
1,800,000-square-foot
• Biggest mall in India
• Expected to be operational
by December, 2014

10. DLF
Gardencity
Premium Projects under the
DLF Gardencity brand at,
• Hyderabad
• Lucknow
• Gurgaon
• Indore
• Chennai

11. DLF Cyber
City
In progress
• Most prime location in Gurgaon, NCR
• Most Ambitious project of DLF Group

12. Mergers and JV’s
- Laing O'Rourke
- Nakheel of Dubai
- WSP Group Plc
- Feedback Ventures
- Hilton Hotels

13. Interesting Facts
- Indian Premier League Deal
- Billionaire Kushal Pal Singh
- India's biggest IPO in history.
- Subsidiary companies

14. Recent issues and legal
hassles
• Higher Interest Due to Higher Debts drive down profits
• Alleged Service Tax evasion of Rs. 30 crore
• Speculation of BJP probe into DLF - Vadra deal
• DLF faces ban from Capital Markets for 3 years
• India’s most indebted company
• DLF directors face ban
• Local govts. revoke project sanctions for DLF Kochi Project and
Mall of India, Gurgaon.

15. Company Structure
and Financials

16. Shareholding Pattern

17. Balance Sheet Analysis
- Income Distribution
- Income Distribution

18. Balance Sheet Analysis
- Profits
- Profits

19. Ratio Analysis

20. Liquidity Measurement Ratios
- Quick Ratio
- Quick Ratio

21. Profitability Indicator Ratios
- Return on Capital Employed
- Return on Capital Employed

22. Debt Ratios
- Debt : Equity Ratio
- Debt : Equity Ratio

23. Operating Performance Ratios
- Asset Turnover Ratio
- Asset Turnover Ratio

24. Cash Flow Indicator Ratio
- Dividend Payout Ratio
- Dividend Payout Ratio

25. Investment Valuation Ratios -
Operating Profit per share

26. Ratio Summary and Analysis
Ratio Type Ratio Outlook
Quick Ratio
Liquidity
Measurement
around 1.7 Unstable
ROCE
Profitability
Indicator
around 10.5 Stabilising
Debt : Equity Debt Ratio around 0.75 Declining
Asset
Tunover
Operating
Performance
around 0.10 Unstable
Dividend
Payout
Cash Flow
Indicator
Range 70 -
65
Stabilising
Operating
Profit Per per
Share
Investment
Valuation
12 - 8 - 6 Declining

27. Stock Quote
Opening High Closing
BSE 117.50 117.50 110.50
NSE 116.00 116.0 110.50

28. Conclusion

29. Thank You