DLF Limited

About DLF Limited:

DLF Limited (Delhi Land & Finance) (BSE: 532868, NSE: DLF) is the largest
commercial real estate developer in India.[1] It was founded by Raghuvendra Singh in
1946 and is based in New Delhi, India.[2] DLF developed residential colonies in Delhi
such as Shivaji Park (their first development), Rajouri Garden, Krishna Nagar, South
Extension, Greater Kailash, Kailash Colony, and Hauz Khas. DLF builds residential,
office, and retail properties.
The company is headed by Indian billionaire Kushal Pal Singh. Kushal Pal Singh,
according to the Forbes listing of richest billionaires in 2009, was the 98th richest man in
the world and the world's richest property developer. The company's US$ 2 billion IPO
in July, 2007 was India's biggest IPO in history. In its first quarter results for the period
ending 30 June 2007, the company reported a turnover of Rs. 3,120.98 Crore and
profits after taxes of Rs. 1,515.48 Crore.

Market Leader:
OBEROI REALTY:
Oberoi Realty (Oberoi Constructions) is a real estate developer based in Mumbai,
Maharashtra. It is led by billionaire Vikas Oberoi. It has completed 32 projects covering
approximately 4.979 million square feet of saleable area spread across the city of
Mumbai. Its main interest is in Residential, Office Space, Retail, Hospitality and Social
Infrastructure properties in Mumbai, the commercial capital of India.
Oasis Tower, The second tallest tower inIndia is developed by Oberoi Realty.

LEVERAGE RATIOS:
Debt Equity Ratio:

2010
0.99

2011
1.09

2012
0.83

2013
0.76

1.2
1
0.8
0.6
0.4
0.2
0
1

INTERPRETATION:
The debt equity has reduced over the years from 0.99 to 0.76 which is way below the
standard ratio. This implies that the company is using more of equity and less of debt in
order to finance its various business activities.

Interest Coverage Ratio:

2010
2.45

2011
2.4

2012
1.97

2013
1.41

3
2.5
2
1.5
1
0.5
0
1

INTERPRETATION:
The interest coverage ratio is decreasing which states that the company is not in a good
position to pay fixed interest to its creditors and therefore they are issuing more of
equity to raise funds.

Capital Structure of the Company:

The DLF Limited is issuing more of equity share in order to raise capital for the
company to fund their development activities and hence they are risk lovers.