Dlf Final Presentation

REAL ESTATE

Presented by: HARKESH BANSAL(5) PANKAJ JAIN (13) ANUPAM KASUHIK (16) NIMISH SHINGHATWADIA (23)

• •

•

Size of Indian Real Estate is currently USD 16 billion. Industry estimates indicate that the sector will – Grow at CAGR of 30% – To reach USD 50 billion by 2010 Demand for quality real estate in India is seeing unprecedented growth-demand supply gap exists across all segments of realty.

…Tremendous opportunity for real estate development across India.

Trends in Real Estate • • • • • • • • •

Growth of India's middle class creating demand for housing. Strong demographic impetus: India has the second largest population in the world and the growth rate of population is still rapid. High growth in service sector (IT/ITES) leading to demand for commercial space. Rising FDI levels has increased commercial space requirements by foreign firms. Expansion of organized retail sector. Growth in retain trade and tourism industry due to growth in Organised retain and hotel industry Development spreading to Tier II and Tier III cities. Easy availability of finance. Alternative/Innovative financing options

DEMAND FORECASTING FOR REAL ESTATE SECTOR Y = a + B1 I + B2P + B3R + B4G

REGRESSION LINE

Y = 1407.8 + 45.9(I) + 0.1 (P) + (-)17.3 (R) + (-)1.26 (G)

FY

Demand in mn sq ft

Income in lacs

Price Per sqft

Int_rate

GDP at FC

Estimated Demand

1

1382

2.25

1200

13.25

4.4

1383.45

2

1423

2.5

1300

12

5.8

1423.64

3

1466

2.75

1400

11

3.8

1463.80

4

1510

3.25

1500

10

8.5

1506.99

5

1555

3.75

1800

10

7.5

1557.89

6

1602

4.3

2250

11

9

1604.02

7

1650

5.15

2900

14

9.4

1648.56

8

 

5.65

3300

12.5

9

1733.51

9

 

6.15

3600

12.5

9

1783.15

10

 

6.75

4000

12.5

9

1846.28

SOURCES : ICICI, E&Y, DEUTSHE BANK, NHB, FICCI………....

Demand Forecasting 2000

Demand in Sq Ft

1800 Fin_Year

1600

Estimated Demand

1400

Actual Demand

1200 1000 1

2

3

4

5

6

7

Financial Year

8

9 10

D L F

• The largest real estate development company in India • In existence since 1946 • Completed 224mn sq ft of development • Focus area – NCR (Delhi and Gurgaon) • Responsible for developing the Satellite town ship in Gurgaon • Current Land Base of 10,255 acres of land bank

DLF- Financials Particulars

FY 05

FY 06

FY 07

608

1154

2615

88

193

1944

Net Profit Margins %

14.5

16.7

74.2

ROE %

11.8

22.7

78.7

ROCE %

8.9

15.5

30

EPS %

0.6

1.3

12.7

Income from Operations in Cr Rs.

PAT in Rs. Cr.

*Source IndiaInfoline

 

 

 

DLF BUSINESS MIX

• • • • •

Brand Name and Reputation Extensive Land Reserves Scale of Operations Strategic Locations Experienced and Dedicated Management

• Regional concentration • Dependency on DAL

• • Political risks. • Macroeconomic Factors • Execution risk

• • • •

Large demand-supply gap in affordable residential accommodation Availability of loans at low interest rates, tax incentives and a growing middle class with higher savings Housing Increasing demand for commercial space Office space for IT/ITeS

THANK YOU