Maintain Buy on DLF - Motilal Oswal

DLF 3QFY11: In-line; Leasing steady; Residential run-rate below guidance; DER up further

DLF's 3QFY11 results are in line with our expectations. EBITDA stood at Rs11.8b up 39.7% YoY, while EBITDA margin stood at 47.5%.

Revenues were up 22.4%YoY to Rs24.8b (v/s our estimate of Rs24.3b), while adjusted net profit remained flat at Rs4.6b v/s our estimate of Rs4.8b.

Gross Debt increased to Rs236b vs Rs232b in 2QFY11, while net debt stood at Rs211b from Rs200b in 2QFY11, leading to increase in net DER (x) to 0.84x.

Residential sales stood at 2.5msf vs 2.1msf in 2QFY11, while commercial leasing stood at ~1.62msf vs 1.6msf in 2QFY11.

Asset sales stood at Rs4b, YTD asset sales stood at Rs11.1b. Guidance was ~Rs20b for FY11. DLF trades at a PER of 15.1x FY12 EPS of Rs14.8 and 12.4x FY13 EPS of Rs18. Our FY13 NAV for DLF is Rs403/share. We expect some more details after the earnings concall at 4PM IST on Feb 1. Maintain Buy.

Source : Equity Bulls

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