DLF : CONSOLIDATED RESULTS Q1Q1Q1

DLF Limited

Regd. Office: Shopping Mall, 3rd Floor, Arjun Marg, DLF City, Phase I, Gurugram - 122 022 (Haryana), India.

CIN - L70101HR1963PLC002484, Website : www.dlf.in

Tel.: [phone],Fax:[phone]

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2023

(₹ in crores unless otherwise stated)

SL NO.	PARTICULARS	QUARTER ENDED	YEAR ENDED
		30.06.2023	31.03.2023	30.06.2022	31.03.2023
		(Unaudited)	(Audited)
		(Unaudited)	(Audited)
			[refer note 2]

1 Income

a)	Revenue from operations	1,423.23	1,456.06	1,441.63	5,694.83
b)	Other income	98.48	119.64	74.65	317.31
Total income	1,521.71	1,575.70	1,516.28	6,012.14

2 Expenses

	a)	Cost of land, plots, constructed properties, development rights and others	688.26	621.55	672.29	2,433.96
	b)	Employee benefits expense	172.75	154.63	122.76	547.88
	c)	Finance costs	84.85	84.56	105.22	392.14
	d)	Depreciation and amortisation expense	36.36	36.04	37.33	148.63
	e)	Other expenses	166.05	281.53	232.92	987.11
	Total expenses	1,148.27	1,178.31	1,170.52	4,509.72
3	Profit before tax, share of profit in associates and joint ventures (1-2)	373.44	397.39	345.76	1,502.42

4 Tax expenses for the period/year

	(a) Current tax	21.50	17.80	14.06	56.88
	(b) Tax relating to earlier years	-	(62.61)	-	(62.61)
	(c) Deferred tax	79.92	157.35	73.55	407.23
	Total tax expenses for the period/year	101.42	112.54	87.61	401.50
5	Profit after tax and before share of profit in associates and joint ventures (3-4)	272.02	284.85	258.15	1,100.92
6	Share of profit in associates and joint ventures (net)	254.09	284.75	211.06	933.03
7	Net profit for the period/year (5+6)	526.11	569.60	469.21	2,033.95

8 Other comprehensive income

	a)	Items that will not be reclassified to profit and loss	1.09	14.01	0.91	22.10
	b)	Income tax relating to items that will not be reclassified to profit and loss	(0.11)	(3.49)	(0.13)	(5.33)
	Total other comprehensive income	0.98	10.52	0.78	16.77
9	Total comprehensive income for the period/year (7+8)	527.09	580.12	469.99	2,050.72

10 Net profit for the period/year attributable to:

Owners of the holding company	527.00	570.01	469.57	2,035.83
Non-controlling interests	(0.89)	(0.41)	(0.36)	(1.88)
	526.11	569.60	469.21	2,033.95

11 Other comprehensive income attributable to:

Owners of the holding company	0.98	10.52	0.78	16.77
Non-controlling interests	-	-	-	-
	0.98	10.52	0.78	16.77

12 Total comprehensive income attributable to:

	Owners of the holding company	527.98	580.53	470.35	2,052.60
	Non-controlling interests	(0.89)	(0.41)	(0.36)	(1.88)
	Paid-up equity share capital (face value of ₹ 2 per share)	527.09	580.12	469.99	2,050.72
13	495.06	495.06	495.06	495.06
14	Other equity				37,192.47

15 Earnings per equity share (face value of ₹ 2 per share) (not annualised)

Basic (₹)	2.13	2.30	1.90	8.22
Diluted (₹)	2.13	2.30	1.90	8.22

Notes to the Consolidated Financial Results

1. The above consolidated financial results of DLF Limited ("the Company"), its subsidiaries, partnership firms (together referred as "the Group") and its joint ventures, joint operations and associates have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 21 July 2023. The statutory auditors have carried out Limited Review of above consolidated financial results of the Group.
2. The figures for the quarter ended 31 March 2023 are the derived figures between audited figures in respect of year ended 31 March 2023 and the unaudited figures for the nine months ended 31 December 2022.
3. These consolidated financial results have been prepared in accordance with the recognition and measurement principles of Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. The said consolidated financial results represent the results of DLF Limited ("the Company"), its subsidiaries, partnership firms (together referred as "the Group"), its joint operations and its share in results of joint ventures and associates which have been prepared in accordance with Ind AS-110 - 'Consolidated Financial Statement' and Ind AS-28 - 'Investment in Associates and Joint Ventures'.
4. The Group's business activities which are primarily real estate development and related activities falls within a single reportable segment as the management of the Group views the entire business activities as real estate development. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement of Ind AS 108 - 'Operating Segments' with respect to single reportable segment. Further, the operations of the Group is domiciled in India and therefore there are no reportable geographical segment.
5. The standalone financial results of the Company for the quarter ended 30 June 2023 are available on the Company's Websitehttps://www.dlf.in/investor.php
   Key standalone financial information is given below:

				(₹ in crores)
Particulars		Quarter ended		Year ended
	30 June 2023	31 March 2023	30 June 2022	31 March 2023
	(Unaudited)	(Audited)	(Unaudited)	(Audited)
		[refer note 2 above]
Total income	900.16	1,833.11	1,007.10	5,173.35
Profit before tax	234.34	1,224.13	326.02	2,739.04
Net profit for the period/year	175.41	1,045.04	244.16	2,310.82
Other comprehensive income	0.28	0.46	0.36	5.74
Total comprehensive income for the	175.69	1,045.50	244.52	2,316.56
period/year

Notes to the Consolidated Financial Results

6. Key litigations:

1. (i) In a complaint filed by Belaire/Magnolia/Park Place owners association against the Company alleging unfair conditions on its buyers, the Competition Commission of India (CCI) had imposed penalty of ₹ 630.00 crores, which is also upheld by the Competition Appellate Tribunal (COMPAT). DLF Limited ("DLF" or "the Company") had filed an appeal before Hon'ble Supreme Court of India (Hon'ble Court) against the said order which the Hon'ble Court admitted vide its order dated 27 August 2014 and the Company deposited ₹ 630.00 crores on Hon'ble Court's direction and has shown the same as recoverable in the books. The Company has filed an application seeking refund including interest, which is to be listed along-with main appeal in due course.
2. 1. CCI vide its order dated 14 May 2015 had directed one of the subsidiary company relating to New Town Heights Project, to cease and desist in implementation of the terms and conditions of Apartment Buyer Agreement which is found to be unfair and abusive. No penalty has been imposed by CCI. Appeals filed by the Company were dismissed by COMPAT and the order of the COMPAT was challenged by the Company, before the Hon'ble Court. The appeals have been tagged with the main appeal (mentioned in Para-a(i) above).
      The above matters are pending for final outcome.
3. In a matter, the Hon'ble High Court of Punjab and Haryana passed order against the Company, one of its subsidiaries and a joint venture company cancelling the sale deeds of land/removal of construction relating to two IT SEZ/ IT Park Projects in Gurugram admeasuring 56.48 acres. The said order was challenged by the Company before Hon'ble Supreme Court of India and the matter is stayed till further orders.
4. In a matter alleging the Company for non-disclosure of material information at the time of filing Red Herring Prospectus in 2007, the Securities and Exchange Board of India (SEBI) restrained the Company and its Officers/certain directors from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for a period of three years. The Securities Appellate Tribunal (SAT) vide its order dated 13 March 2015 quashed and set aside the order passed by SEBI. Against SAT's order, SEBI filed an appeal with the Hon'ble Supreme Court of India (Hon'ble Court), which stood admitted vide order dated 24 April 2015 without granting any interim stay in favour of SEBI. In October 2015, SEBI filed applications before the Hon'ble Court seeking, restraint on the Company, its promoters and/or directors from proceeding with the sale of 159,699,999 Cumulative Compulsorily Convertible Preference Shares of DLF Cyber City Developers Limited held by the promoter group companies to third party institutional investors. The said applications came up for hearing before the Hon'ble Court on 4 November 2015 and the Hon'ble Court did not pass any orders restraining the Transaction and simply directed that the said applications be listed along with the appeal. The matters are pending for final outcome.

Notes to the Consolidated Financial Results

1. A subsidiary company has total outstanding trade receivables from Coal India Limited and its subsidiaries (together referred to as "CIL") amounting to ₹ 259.68 crores. The subsidiary company and CIL had approached JSERC (Jharkhand State Electricity Regulatory Commission) for fixation of tariff, who passed the order in favor of the subsidiary company and the same was upheld by Appellate Tribunal. CIL filed appeal to Hon'ble Supreme Court of India (Hon'ble Court) which issued order dated 14 September 2012 directing CIL to pay tariff fixed by JSERC as confirmed by Appellate Tribunal, however, the said amount is still pending recovery. The subsidiary company believes that pending final disposal of the matter and keeping in view the interim relief granted by the Hon'ble Court the amounts due from CIL are fully recoverable. In addition, there are other similar cases from other customers wherein amount involved is ₹ 137.18 crores and the subsidiary company is confident of its recovery based on the Court decisions till date and legal advice.

Based on the grounds of the appeals and advice of the independent legal counsels, management believes that there is strong likelihood of succeeding in respect of above matters. Pending the final decisions on the above matters, no adjustment has been made in these consolidated financial results.

1. In earlier years, one of the joint venture company, Joyous Housing Limited (JHL) had defaulted in meeting its debt obligation to a housing finance company (HFC or lender). The lender amongst various actions to recover its dues, initiated e-auction of the project, served notices to initiate legal proceedings for alleged contravention related to the loan agreement against JHL, its directors, and shareholders. Further, the lender has also initiated the process to take control of the board of JHL and offered the pledged shares to all three shareholders. In this regard, the Group has submitted a formal expression of interest to purchase 100% shares of JHL for a consideration above the reserve price at which the lender has offered the shares to ensure repayment of the dues to the lender and other financial creditors of JHL.
   However, one of the shareholders has filed a petition opposing the actions taken by the other shareholders at the instructions of the lender before National Company Law Tribunal, Mumbai (NCLT). Subsequently, NCLT has passed a status quo order with regard to such actions. Further, the Company has also initiated arbitration proceedings.
   Based on the legal advice, management believes it has a strong likelihood of successful outcome in its favour. Still, due to ongoing dispute and uncertainties involved w.r.t. outcome of litigation/arbitration and consequential impact on recoverability of the Company's investment/loan, the provision recognised against such investment/loan in earlier years is considered to be adequate and the net carrying value amounting to ₹ 180.36 crores is considered good for recovery as the project has adequate inherent value, once it is litigation free.

The above litigations as mentioned in point 6 (a), (b), (c), (d) and (e) are subject matter of 'Emphasis of Matter' in Independent Auditor's Review Report.

Notes to the Consolidated Financial Results

1. During the quarter, the Hon'ble National Company Law Tribunal (NCLT), Chandigarh Bench vide its Order dated 15 June 2023 has approved the Scheme of Amalgamation involving DLF Golf Resorts Limited and DLF Homes Services Private Limited (Transferor Companies) with DLF Recreational Foundation Limited (Transferee Company) pursuant to Sections 230-232 and other relevant provisions of the Companies Act, 2013 read with the Rules made thereunder.
2. During the quarter, the Board of Directors of a wholly-owned subsidiary Company in its meeting held on 30 May 2023 has approved the divestment of 49% stake in one of its wholly-owned step down subsidiary namely Pegeen Builders & Developers Private Limited, in favor of a developer from Mumbai to undertake a project in Andheri (W), Mumbai.
3. The figures for the corresponding previous period/year have been regrouped/reclassified, wherever necessary.

On behalf of the Board of Directors

Place: New Delhi	Devinder Singh	Ashok Kumar Tyagi
Date: 21 July 2023	CEO & Whole-time-Director	CEO & Whole-time Director