DLF : EARNINGS CALL TRANSCRIPT Q4-AnnualQ4-AnnualQ4-Annual

`

I now hand the conference over to Mr. Vivek Anand. Thank you, and over to you, sir.

DLF Limited

May 13, 2023

I'll now move to the financial highlights for financial year '23 of DLF Cyber City Developers Limited consolidated

results. Rental income grew to INR3,967 crores, a year-on-year growth of 19%. Consolidated revenue of INR5,419

crores, reflecting a 19% year-on-year growth. EBITDA at INR4,148 crores, year-on-year growth of 19%. Net profit

of INR1,429 crores reflecting year-on-year growth of 43%.

The recovery across the office segment remains gradual on account of continued global macro headwinds, while

such headwinds continue to impact decision-making in the short term, we believe that India would continue to be

the preferred destination for global captive and large occupiers. The occupancy of our existing portfolio remains

steady. However, we are witnessing healthy demand interactions for our newer developments, indicating a clear shift

by large occupiers towards quality workplaces, offering enhanced safety, engaging experience and an integrated

sustainable ecosystem. With this backdrop, we continue to invest on our new developments across DLF Downtown

Gurugram and Chennai and are implementing asset enhancement strategies across our existing portfolio as well.

Our retail business continues to operate at high occupancy levels and deliver healthy growth. Footfall levels are now

reaching the pre-pandemic level with consumption trends showing buoyancy. We expect sustained momentum for

quality retail destinations and hence continue our expansion plans in this segment across multiple markets. We

continue to work extensively towards our upcoming retail destination, Mall of India Gurgaon, for which planning is

at advanced stages.

We continue to remain a positive outlook for both our businesses and remain committed to delivering consistent and

profitable growth by bringing quality new offerings across multiple markets. We believe that our business, backed

by a strong balance sheet and healthy cash flows remains well poised to deliver across all parameters.

Right! With this, I end here and we are now open for questions and answers. Thank you.

Moderator:

The first question is from the line of Saurabh Kumar from JP Morgan. Please go ahead.

Saurabh Kumar:

Hi. Thanks for this and after this quarter, I don't think there are many questions, but let me still try. So, two on the

office side, two on the resi side. From the residential part one is, how would you think about your sales guidance for

next year after this INR15,000 crores sales this year? And should we assume this similar 60%, 65% sales through

velocity that you have achieved this year?

Secondly, specifically in terms of Arbour, why would you not hold on to inventory, if the product is so good? Was

there some issues on the taxes being better into this financial year, which led you to this decision? And on the office

side, basically, what were the mix of the SEZ, non-SEZ in the portfolio? Are you seeing some pressure on the SEZ

side there? And on the retail side, you've said that the malls will double in the next 4, 5 years, what are these? So, a

bunch of questions, but thank you.

Ashok Kr. Tyagi:

So Saurabh good morning. On the guidance piece for next year, that's a tricky one, frankly, because I know you are

possibly leading us down a slippery path. So, the way we look at it, frankly, we try to be very balanced about it. I

think in some sense that I'll get Aakash to chip in. I think the Q1 and Q2 are really linked to each other. In all fairness,

our estimation and our plan on Arbour was very transparently that it's an INR8,000 crores launch. We'll possibly do

between INR3,000 crores to INR3,500 crores in Q4 and the balance across end Q2 of the next fiscal.

I think as, and I request Aakash to chip in, I think even Aakash, with all his decades of experience was overwhelmed

by the sheer quantum of response that the product generated. I think almost INR3,500 crores - 3,500 checks for

Page 3 of 14

DLF Limited

May 13, 2023

1,100 apartments, etcetera. So really we up the ante Saurabh, as you know, that normally customers -- I mean,

normally the developers declare pre-sales on the application, we said we will declare pre-sales only if we are able to

collect the first 30 day installment of 10% that means people have actually paid up 75 lakh each and they all have

signed the agreement to sale, which is under RERA. Even that threshold was met 100%.

So really, you know, frankly, we had no option but, I mean, I don't think we had any rational or frankly almost any

logistical opportunity for us to actually defer Arbour sales across two or three quarters. I mean, it all came in one

quarter. I think it's obviously a delight. It's also in all fairness left a lot of, you know, our own friends and

acquaintances unhappy who could not get the allotment and that's fine.

But really, I would say that a normalized sale for this year should really have been the range of INR10,000 to

INR11,000, but it just happened to be INR15,000 because the INR4,000 crores installment happened. So, we'll still

keep our head guided and we'll say that next year we should still be looking at a case guidance of INR11,000 crores

to INR12,000 crores. But again, given the fact that we have two or three very interesting products lined up next year,

you know, could there be a positive surprise? Of course. But I say from a guidance standpoint, we'll still say

INR11,000 crores to INR12,000 is the guidance.

Vivek Anand:

Yes. Absolutely. I think just to add Saurabh, I think this year we've launched 10 million square feet of products,

adding up to almost the sales potential of INR15,000 crores. I think we got a very good response from the market.

And considering that we've increased our launch pipeline to 11 million square feet for the current financial year,

adding up to a sales potential of close to INR20,000 crores, right. So, I think our ambition is very clear really to

really grow from here, right? There is no doubt about that.

But having said that as Mr. Tyagi explained, from a guidance point of view, it will be INR11,000 cores to INR12,000,

crores which we believe is achievable and we will certainly try our best to really beat that estimate.

Ashok Kr. Tyagi:

Aakash, on Arbour?

Aakash Ohri:

Yes. Saurabh on Arbour, let me just also come in. Now you asked a question about was this done for any tax benefits

and all? Let me tell you, I was in the thick of things then. Short of being lynched and kind of taking a call on certain

things on the ground. There was literally -- there was nothing one could do. It was such a pleasure, ladies and

gentlemen, after a long time to see the tsunami of owners and prospects and CPs and partners, strong and swarm in

the place. I have some videos which I'd like to share separately whenever there is a chance.

But let me tell you, when we started to build up, the buildup started well. It was a pent-up demand for a DLF group-

housing product in Gurgaon. A lot of work, you know, seeding had been done. As you know, compliance related

post data only we can get down to doing stuff. So we immediately dispatched teams all over the world. We did a lot

of work internally. A lot of good responses from the corporates.

But at that point of time, we had a choice, you're right, absolutely. And to what Mr. Tyagi mentioned and deliberated,

I think not once, but 10 times on this issue where things kept happening. We had a choice Saurabh to push it to Q1

and make more money. Definitely. And let me tell you how much more money about at least a INR1,000 crores

more could have been done. I mean, as far as this company is concerned, I think the customer's interest and prospects

interest has always come first and that is what we're known for. I think we've demonstrated it many times. Arbour

being one also, I'll tell you where the situation kind of came in like that. And we had a lot of responses that came in

from people.

Page 4 of 14