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Sunday, August 7, 2016

Key takeaways from DLF Annual Report 2015-16

  • Employee cost reduced from Rs 349crores to 316crores despite a 20% revenue growth. 
  • 31.3MnSqft is rented out for Rs 26000MINR(annualized) at a 95% occupancy rate. This equates to Rs 850/Sqft/year or Rs 71/Sqft/month(!!). This with a reinvestment capex of just 5% of rental revenue. 
  • Investments in infrastructure paying out
    • 16lane road 8.5kms length from Delhi to Golf Course road nearing completion
    • Cybercity metro investments and highway spend
  • Consolidated Borrowing costs reduced y-o-y from 11.86%(11.48% standalone) to 11%(10.55% for standalone)
  • CSR Spend of 10.4crores is fully spent
  • Around 2000 permanenent employees of which 18% women
  • MD&A section contains details on litigation notably SEBI, COMPAT and P&H court orders. This is material but cannot be fully appreciated from the annual report.
  • Possible transfer pricing complexity here-since holding company does NOT account for majority of assets or profits. Below table indicates this. There does not seem negligible risk of tunneling since these key entities are nearly all 100% owned. But this profit split is strange.

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