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Rapid expansion aided real estate firm, DLF build a brand and scale up during
the real estates boom phase, but its size has now has become its bane.
Positive news on the sales of non-core assets might have helped in supporting
the stock at lower levels. However, this has hardly done much to ease the
balance sheet pressure and enhance operating cash flows for the firm.
Consolidated net debt has surged from Rs.8,526 cr in FY14 to Rs.22,120 cr at
the end of June 2016. Paring this down even more requires sales recovery,
which is not happening at the pace at which it should. DLFs June quarter net
sales fell by 21 per cent
over a year ago.
Meanwhile, DLF share
price was trading up
2.02 per cent at
Rs.156.85 on the NSE
today.The stock opened
at Rs.155.45 from a
previous closing of
153.75. The current
market cap of DLF
amounts to 27428.20
(Cr) while its book value stands at 153.37.
Quarterly sales:
If we look at the last 8 quarters revenue sales, the company seems not in a
very good shape. The sales pickup isnt enough to ease cash flow stress in the
coming term. Quarterly sales booked have consistently been low at 0.2-0.9
million square ft. with a downward bias. The June quarter, in fact, had no sales
from existing completed projects. Also, Rs.270 cr-worth of legacy bookings
was discarded. On top of this, piled up, the huge closing balance of existing
projects. Albeit this has been reducing, the companys June quarter closing
balance was 21.9 million square ft. The balance sheet for FY16 pins the
Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment
Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of
MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange
authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and
based on their observations have issued advise letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/
Research Analyst/ his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or
other benefits from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company
Article Written by
Salman Hashmi