Fundamentals of DLF
|P/E Ratio (TTM)||71.68|
|Debt to Equity||0.09|
Financials of DLF
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||408.04||397.39||373.44||463.97|
|EPS in Rs||2.1||2.3||2.13||2.52|
History of DLF
DLF Ltd. was incorporated on July 4, 1963, and founded by Chaudhary Raghuvendra Singh. In its initial years, the company began developing early residential colonies in Delhi, such as Krishna Nagar, which was completed in 1949. However, after the passing of the Delhi Development Act in 1957, the state assumed control of real estate development in Delhi, leading to restrictions on private real estate colony development. DLF, therefore, started acquiring land at a relatively low cost outside the area under the Delhi Development Authority, particularly in the district of Gurgaon in the adjacent state of Haryana.
Their first landmark real estate development project was the DLF Qutab Enclave, which has now evolved into DLF City, spread over 3,000 acres in Gurgaon. With work on it starting in 1985, DLF Qutab Enclave is an integrated township, which includes residential, commercial and retail properties along with schools, hospitals, hotels, and shopping malls, as well as the prestigious DLF Golf and Country Club.
In 1996, the company ventured into group housing projects and later into Grade A office spaces in Gurgaon. In 2002, the company ventured into organised retail complexes and in 2003, they commenced the development of DLF Cybercity Gurgaon. In 2012, they started an expressway project and a multilevel parking facility. In 2014, DLF’s subsidiary Emporio Limited performed the issuance of India’s first Commercial Mortgage Backed Security (CMBS) of ₹525 crore. In 2022, the company launched ONE Midtown’, a luxury group housing project. Presently, DLF Cybercity Chennai, DLF Cybercity Kolkata, DLF Cybercity Bhubaneswar and similar enclaves in Hyderabad, Delhi and Noida are present.
Business Segments of DLF
DLF has the following business segments:
- DLF is one of the largest real estate developer companies in India. Its services include the identification and acquisition of land for its clients to the planning, execution, and marketing of projects.
- The company is also involved in the business of leasing, power generation, maintenance services, hospitality, etc.
- It is also involved in leasing and operating office/commercial space, IT/ITES/SEZ, IT parks, premium and luxury malls, etc.
DLF organises its business or projects on a strategic business unit (SBU) basis. The Homes SBU has 3 major segments of the residential market, namely Super Luxury, Luxury and Mid-Income. The product range includes condominiums, duplexes, row houses and apartments of varying sizes.
The company also owns multiple subsidiary companies such as Dalmia Promoters and Developers Private Limited, DLF Luxury Homes Limited, Riveria Commercial Developers Limited, etc.
Key Personnel of DLF
Mr. Ashok Kumar Tyagi and Mr. Devinder Singh have been appointed as managing directors of the company.
- Mr. Rajiv Singh, Chairman
Mr. Singh has over 35 years of experience working in the real estate industry. Under his leadership, the company has grown from ₹15.5 million in 2007 to ₹29,000 million in 2019. His accomplishments in building a world-class infrastructure for Indian residents and commercial entities have resulted in both the inflow of foreign investments as well as the creation of numerous jobs.
- Mr. Ashok Kumar Tyagi, Managing Director
Mr. Tyagi studied at IIM Ahmedabad and IIT Roorkee. He joined DLF on July 14, 2008 as executive director. His work there included business planning, budgeting, project monitoring, audits and document control. He had also earlier worked as the company’s CFO. He also performed commercial functions and support functions, including finance, HR, legal and secretarial functions.
- Mr. Devinder Singh, Managing Director
Mr. Singh has PGDM and engineering degrees. He joined the company on November 25, 1985, as a graduate engineer trainee. He was overseeing the growth strategies of the company in the Gurugram area. He became a full-time director on the board of the company on December 1, 2017. He was earlier responsible for the entire North region, comprising Gurgaon (including DLF-5), the Tri-city region, Punjab and Himachal Pradesh.
The following are some of the key corporate actions undertaken by DLF in the past few years:
DLF has not announced any stock splits or issue of bonus shares or rights issues.
Mergers and Acquisitions
- During the year ended March 31, 2022, the DLF Group acquired 100% shareholding in 35 Indian companies for a consideration of ~₹35 crore.
- During FY 2022, DLF Phase-IV Commercial Developers Limited, DLF Residential Builders Limited, DLF Real Estate Builders Limited and the real estate undertaking of DLF Utilities Limited merged with the company.
- In 2021, the Honourable NCLT, Chandigarh, approved a Scheme of Amalgamation of DLF Property Developers Ltd., Genisys Property Builders & Developers Pvt. Ltd. and Ghaliya Builders & Developers Pvt. Ltd. (Transferor Companies) with DLF Luxury Homes Limited (Transferee Company).
- In FY 2010-11, DLF’s subsidiary DLF Home Developers Ltd acquired an additional 50% interest in Delanco Real Estate Pvt. Ltd. and a 50% interest in Design Plus Architecture Pvt. Ltd.
The following are some of the key financial highlights of DLF in the past few years:
- In terms of market capitalisation, it is the largest real estate developer in India.
- In the period between FY 2020-21 and FY 2022-23, the company had nearly doubled its net profit.
- However, in the period between FY 2019-20 to FY 2022-23, the company had negative net cash flows every year.
- As of September 18, 2023, the company has a high current ratio of 2.26 but a low quick ratio of 0.53.
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What is the Share price of DLF (DLF)?
Can I buy DLF (DLF) shares?
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What are the Subsidiaries that comes under DLF?
The key subsidiaries that come under DLF are DLF Power and Services Ltd, DLF Cyber City Developers Limited, Lodhi Hotel, DLF Brands Limited, DLF Utilities, DLF Gold Resorts Limited, and DLF Home Developers Limited.
What is the total Asset of DLF?
The total asset of DLF is Rs. 51,167 Cores.
What is the main business of DLF?
The main business of DLF is the development of residential, commercial and retail properties. DLF has a distinctive business model such that earnings arise from its developmental activities and rentals. Its operations span across all aspects of real estate development.
Who are the promoters of DLF?
The key promoters of DLF are Rajdhani Investments and Agencies Private Limited, Prem Traders Llp, Mallika Housing Company Llp , Raisina Agencies Llp, Jhandewalan Ancillaries Llp, and Dlf Urva Real Estate Developers And Services Private Limited.