DLF : EARNINGS CALL TRANSCRIPT Q3Q3Q3

recovery. Strong momentum across the retail business continues. Rental income grew to INR

1,003 crores, year-on-year growth of 15%. Consolidated revenue at INR 1,363 crores as

compared to INR 1,176 crores last year, reflecting a 16% year-on-year growth.

EBITDA stood at INR 1,061 crores. Year-on-year growth of 16%. Net profit at INR 358 crores,

reflecting a year-on-year growth of 27%. Occupiers attendance across the portfolio continues to

inch upwards with gradual recovery across the office segment. While global headwind continues

to persist leading to a challenging environment, we expect demand for quality office assets at

established locations should continue to garner interest of larger occupiers.

New developments across DLF Downtown, Gurugram and Chennai remains on track, planning

for our upcoming retail destination Mall of India at Gurugram is in advanced stages. The retail

business continues to exhibit healthy growth. Consumption trends continue to reflect sustained

momentum with sales delivering consistent growth leading to a healthy retail business outlook.

We remain well positioned to achieve our business objectives, which are strongly supported by

continued housing demand, quality offerings and a healthy balance sheet, right? Thank you for

listening to me and we can now open the floor for the Q&A session. Thank you.

Moderator:

We have our first question from the line of Saurabh Kumar from JPMorgan.

Saurabh Kumar:

I just had a few questions, sir. First is on this DCCDL settlement. So is there anything left? Or

are we now fully done on this? And as a consequence of this, should the interest cost on the P&L

now further come down? So that was -- I can follow them together and you could respond.

Vivek Anand:

We'll answer all of them together, yes.

Saurabh Kumar:

Okay. The second one was, sir, essentially on this mortgage rates. So we are now seeing a 9%

trend and probably will go to 9.25%. So have you seen any clear trends of reduction in footfalls

in terms of site visits? The third is essentially around this, the golf course extension project. I

am seeing value of INR 7,500 crores for this project. So I just want to know what is the average

price you are assuming for - through the cycle for this project?

And lastly, on DCCDL, does the rental now include Midtown -- the Downtown, sorry, at that

INR 1,060 crores EBITDA through Downtown. And also, if you can talk about the progression

at DLF Downtown?

Vivek Anand:

Saurabh, thanks for your questions. Let me take it one by one. So this DCCDL settlement of

INR 582 crores, which is a cash settlement during the quarter, this completes all settlements. So

there is no outstanding or capex advance in our books as on 31st December 2022. I think that

was the first question. That's right. I'll move on. On the mortgage rates, your question was that

are we...

Saurabh Kumar:

Interest costs will go down due to the settlement now because you were paying some interest on

this, too.

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DLF Limited

January 27, 2023

Vivek Anand:

Yes, yes, yes, we were paying some interest on that. So that interest has been -- we made this

settlement in October. So post October, there is no interest on that. So you will see that reduction

thereafter. Yes? Okay? And on mortgage rates, yes, they are now close to 9% and in some cases,

upwards of 9%. So your question is, are we seeing an impact on the footfalls, right? So at this

point in time, if you really look at our sales numbers, I think the kind of response we've got in

our -- in the last quarter, especially the two launches we had, right? We are not seeing any

significant impact of that as of now.

The third one was the sectors, 63 group housing. So what we have indicated to you will be the

launch value of INR 8,000 crores during this quarter, right? So that's coming largely from two

projects. One is sector 93 and 63. And at this point in time, I think we are still in the process of

finalizing the launch, including the pricing. But the total square feet I can give you, right, which

is the launch, is around 4.4 million square feet for Sector 63. And last part was DCCDL rental

of INR 1,003 crores. Does it include Downtown 2 and 3 rental? The answer is yes.

Sriram Khattar:

So we received the occupation certificate for Downtown 2 and 3 end of June 22. And thereafter,

the tenants took possession and started the fit-outs. So the first rental started trickling in from

November. So what we had in the December quarter is a very small portion. This will be much

higher in the March '23 quarter and will then sort of stabilize in Q1 of next year to its

completeness. For your information, it's -- the buildings are -- building 2 and 3 are completely

leased and the rental will be for the entire 1.65 million, except to the extent of one or two floors,

which are on hard options with a multinational company.

Saurabh Kumar:

Okay. So we are -- I mean, you've already achieved INR 4,200 crores exit NOI this year?

Sriram Khattar:

Saurabh going to explain that, right, asking that we should be able to meet INR 4,200 crores this

quarter.

Saurabh Kumar:

But next year, we should then hit that 45, 46 mark pretty easily?

Ashok KumarTyagi:

Yes, I would tend to agree. Saurabh, sorry, only one more clarification on the DCCDL advance,

you are correct. The advances as of today are completely settled. However, as you are aware,

the basic -- the genesis of this advance was that DAL has an onward arrangement for over 15

years with DLF, where DLF constructs the SEZ buildings and transfers to DAL. However, to

ensure that DLF is not out of pocket, DAL traditionally advances that money to DLF. So right

now since Hyderabad was delayed, this outstanding advance has been refunded back completely.

As and when a new building comes back on the anvil, maybe a fresh advance would be taken

from DCCDL.

Saurabh Kumar:

And just one thing. 6 million square feet of DAL is still left to be delivered by DLF to DAL?

Ashok Kumar Tyagi:

Yes, I don't have the exact number, but yes, between Silokhera, between Hyderabad, yes, you're

right, approximately, yes.

Moderator:

We have our next question from the line of Kunal from CLSA.

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