DLF 2023-24 Annual Report Analysis

Fri, 19 Jul

DLF has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

DLF Income Statement Analysis

• Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.0% in FY24 as against 30.3% in FY23.
• Depreciation charges decreased by 0.5% and finance costs decreased by 9.1% YoY, respectively.
• Other income grew by 67.5% YoY.
• Net profit for the year grew by 48.1% YoY.
• Net profit margins during the year grew from 19.3% in FY23 to 25.4% in FY24.

DLF Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,948	64,270	12.9%
Other income	Rs m	3,173	5,313	67.5%
Total Revenues	Rs m	60,121	69,583	15.7%
Gross profit	Rs m	17,259	21,236	23.0%
Depreciation	Rs m	1,486	1,479	-0.5%
Interest	Rs m	3,921	3,564	-9.1%
Profit before tax	Rs m	15,024	21,505	43.1%
Tax	Rs m	4,015	5,201	29.5%
Profit after tax	Rs m	11,009	16,304	48.1%
Gross profit margin	%	30.3	33.0
Effective tax rate	%	26.7	24.2
Net profit margin	%	19.3	25.4

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DLF Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 141 billion as compared to Rs 109 billion in FY23, thereby witnessing an increase of 29.4%.
• Long-term debt stood at Rs 24 billion as compared to Rs 10 billion during FY23, a growth of 132.4%.
• Current assets rose 27% and stood at Rs 320 billion, while fixed assets fell 1% and stood at Rs 265 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 591 billion as against Rs 526 billion during FY23, thereby witnessing a growth of 12%.

DLF Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	376,875	394,308	4.6
Current Liabilities	Rs m	109,271	141,366	29.4
Long-term Debt	Rs m	10,497	24,390	132.4
Total Liabilities	Rs m	525,722	590,689	12.4
Current assets	Rs m	252,425	320,184	26.8
Fixed Assets	Rs m	268,015	265,122	-1.1
Total Assets	Rs m	525,722	590,689	12.4

DLF Cash Flow Statement Analysis

• DLF's cash flow from operating activities (CFO) during FY24 stood at Rs 25 billion, an improvement of 6.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -15 billion, an improvement of 230.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 109% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 12 billion from the Rs -985 million net cash flows seen during FY23.

DLF Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	23,753	25,388	6.9%
Cash Flow from Investing Activities	Rs m	-4,626	-15,287	-
Cash Flow from Financing Activities	Rs m	-20,132	1,766	-
Net Cash Flow	Rs m	-985	11,865	-

Current Valuations for DLF

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an improvement from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 845.0, stands at 128.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 32.5 times.
• The company's price to cash flow (P/CF) ratio stood at 90.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	23.0	26.0
TTM Earnings per share	Rs	4.4	6.6
Diluted earnings per share	Rs	4.4	6.6
Price to Cash Flow	x	70.7	90.5
TTM P/E ratio	x	80.3	128.3
Price / Book Value ratio	x	2.3	4.1
Market Cap	Rs m	882,696	1,610,252
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for DLF

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 7.0x during FY24, from 4.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 4.1% during FY24, from 2.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 6.0% during FY24, from 4.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 3.4% during FY24, from 2.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.3	2.3
Debtors’ Days	Days	352	306
Interest coverage	x	4.8	7.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	2.8	3.4
Return on equity	%	2.9	4.1
Return on capital employed	%	4.9	6.0

To see how DLF has performed over the last 5 years, please visit here.

DLF Share Price Performance

Over the last one year, DLF share price has moved up from Rs 501.0 to Rs 845.0, registering a gain of Rs 344.0 or around 68.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,771.8 (down 0.3%). Over the last one year it has moved up from 4,292.9 to 8,771.8, a gain of 4,479 points (up 104.3%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for DLF and quarterly results for DLF)