Rating Rationale
September 16, 2022 | Mumbai
DLF Limited
Rating outlook revised to 'Positive'; Ratings Reaffirmed
 
Rating Action
Total Bank Loan Facilities RatedRs.3183 Crore
Long Term RatingCRISIL AA-/Positive (Outlook revised from 'Stable'; Rating Reaffirmed)
Short Term RatingCRISIL A1+ (Reaffirmed)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has revised its outlook on the long term bank facilities of DLF Limited (DLF) to ‘Positive’ from ‘Stable’ while reaffirming the rating at ‘CRISIL AA-’; The rating on the short-term bank facilities has been reaffirmed at ‘CRISIL A1+’.

 

The revision in outlook reflects further improvement in business risk profile of DLF driven by high sales booking, liquidation of finished inventory, healthy launch pipeline and steady receivables. Financial risk profile of DLF has also strengthened marked by significant reduction in debt levels and strong financial flexibility.

 

The company registered Rs. 1,453 crore of net sales booking (Rs. 2,040 crore including ONE Midtown JV) in the first quarter of fiscal 2023, driven by a healthy demand momentum, strong ~7.6 msf launch pipeline, focus on short cycle projects and liquidation of unsold inventory. New product offerings are also being planned in certain key markets such as Chandigarh Tri-city, Chennai and Goa in addition to its core markets of Delhi and Gurugram which will support the business risk profile of the company. In fiscal 2022, DLF recorded net sales booking of Rs. 5,321 crore (Rs 7,273 crore including ONE Midtown JV), the highest in the past six fiscals, driven by sustained sales momentum and fundamental drivers like affordability and the desire to own a home. The company also exhibited a strong double digit pricing growth across the product offerings resulting in significant value enhancement.

 

Liquidation of inventory of Rs. 4,478 Cr (including finished inventory of Rs 3,470 crore) as on June’22 along with receipt of pending receivables of around Rs 4,627 crore (including Rs. 1,199 Cr from finished inventory) as on June’22 from sales that have already been made will provide further stability to the cash flow, support construction costs and maintain debt at reduced levels. The company has significantly reduced gross debt from Rs. 6,510 crore in fiscal 2021 to Rs. 3,900 crore in fiscal 2022 due to higher prepayment of debt on account of strong collections. Consequently the debt/total assets reduced to 0.18 time in fiscal 2022 from 0.28 time the preceding fiscal and is expected to fall further in current fiscal. DLF has pre-paid close to Rs. 2,000 crore of debt in last two fiscals.

 

Out of the outstanding gross debt of Rs.3,900 crore, ~35% is lease rental discounting (LRD) debt against its commercial assets’ portfolio, which further reduces burden on overall cash flows of DLF. Excluding the LRD debt, the gross debt was at Rs 2,552 crore as on March’22. In the development business under DLF, liquidity is supported by cash and bank balance of Rs 1,220 crore as on March 31, 2022 and the company emphasises to continue with its focus on debt reduction over the medium term.

 

The cash flow of DLF would also continue to be supported by the dividend income received from DLF Cyber City Developers Ltd (DCCDL; rated ‘CRISIL AA/Stable’; joint venture [JV] of DLF with GIC; DLF has two-third stake in DCCDL), the rental arm of the group.

 

These strengths are partially offset by susceptibility to risks and cyclicality inherent in the real estate sector along with large contingent liabilities and pending litigation.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of DLF and its subsidiaries and associates because of their strong operational and financial linkages. Furthermore, CRISIL Ratings continues to moderately consolidate DCCDL to the extent of economic incentive it draws. With the settlement of assets and inter-party payables between the two entities in fiscal 2020, the debt and cash flow of DCCDL remain ring-fenced. Both the entities have an independent management, with no cross-guarantees/securities provided by either (except for a few specific assets, where the underlying land is with DLF); DLF and GIC have some affirmative rights for decisions taken at DCCDL. CRISIL Ratings continues to factor in the dividend that DLF would receive from DCCDL on account of its shareholding in DCCDL.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Strong market position, aided by large, low-cost land bank and economies of scale: DLF has an established track record in the domestic real estate sector across segments and regions. It is a well-recognised brand, with the most extensive track record among private developers. The large, low-cost land bank, with a development potential of 187 million square feet (msf) out of which about 35 msf is already identified for development in prime locations, underpins the company’s strong market position, supports profitability and lends a significant competitive advantage over other real estate developers.

 

  • Healthy financial risk profile supported by reduction in debt levels: The company has significantly reduced gross debt from Rs. 6,510 crore in fiscal 2021 to Rs. 3,900 crore in fiscal 2022 due to higher prepayment of debt on account of strong collections. The debt/total assets reduced to 0.18 time in fiscal 2022 from 0.28 time the preceding fiscal and is expected to fall further in current fiscal. Out of the outstanding gross debt, ~35% is LRD in nature. Excluding these, the gross debt would be Rs 2,552 crore as on March’22. DLF has emphasised to continue with its focus on debt reduction over the medium term. Any deviation from the debt reduction trajectory will be a key monitorable.

 

Furthermore, gradual sales of the finished inventory will continue to support the cash flow over the medium term while the rental portfolio of 2.1 msf would continue to contribute approximately Rs 250 crore annually. DLF also has certain projects under development in JV companies, debt for which is not consolidated. While these projects are expected to be incrementally funded out of their own collections and sanctioned debt limits, limited support from DLF is expected in the near term. Furthermore, the management has plans to launch some more projects in JVs over the medium term – of which some have already been launched in fiscal 2022.

 

  • Strong financial flexibility: Financial flexibility is driven by annual dividend expected from DCCDL which supports the cash flow of the company. DLF also has a track record of raising funds from national and international investors, banks and financial institutions further providing liquidity cushion. Cash flows are also supported by the portfolio of leased assets and large land bank. Rental income of DLF, including DCCDL, stood at Rs 3,544 crore in fiscal 2022 against Rs. 3231 crore in fiscal 2021.

 

Weaknesses:

  • Exposure to inherent risks and cyclicality in the real estate industry and risk of geographical concentration in revenue profile: Cyclicality in the real estate segment causes fluctuations in cash inflow. As against this, cash outflow towards projects and debt obligation are relatively fixed, resulting in substantial cash flow mismatch. The Covid-19 pandemic had caused some disruption and adversely impact the cash flow of real estate developers. The company experienced the same during the pandemic with collections at Rs. 2,509 crore in fiscal 2021. However, pick-up has been seen in the business environment leading to increased sales of the finished inventory. Any decline in the pace of sales in the inventory of Rs 4,478 crore as on June 2022 could lower collections and expose DLF to refinancing risk. Furthermore, occupancy levels and rental rates remain susceptible to economic downturns, which could constrain the tenant's business risk profile and rental collections.

 

DLF’s reliance on Gurgaon’s real estate market has been high and in case of any significant slowdown in demand or oversupply in the region, future revenues will be impacted. However, the company is slowly focusing on geographical diversification and has re-entered Chennai after 10 years & successfully launched Parc Estate worth Rs. 700 crore while has also planned launches across Goa, Panchkula and Mullanpur. However, the extend of geographical diversification in the revenue profile will remain a key monitorable.

 

  • Large contingent liabilities and pending litigations: The group has significant contingent liabilities because of matters related to income tax and service tax along with indemnities provided to DCCDL and penalty imposed by the Competition Commission of India (CCI) in 2011 (for which DLF has already deposited Rs 630 crore with the Supreme Court towards the CCI penalty). Most of the matters are longstanding and have shown limited progress, and some amounts have been deposited pending resolution. While there has been no crystallisation of liabilities, the matters will be resolved in due course and, nonetheless, would remain closely monitored.

Liquidity: Strong

In the development business under DLF, liquidity is supported by cash and bank balance of Rs 1,220 crore as on March 31, 2022. Utilisation of fund based bank lines (sanctioned limit of Rs 2,482 crore) averaged 68% and non fund based limits (sanctioned limit of Rs. 850 crore) averaged 53% during the 12 months ended June 30, 2022. Financial flexibility is supported by a track record of raising funds from national and international investors, banks and financial institutions and from a portfolio of leased assets and a large land bank. Cash accrual, cash and equivalents and unutilised bank lines should be sufficient to meet the debt obligation as well as incremental capital expenditure (capex) and working capital requirement. For the rental business under DCCDL, cash accrual is healthy, backed by a steady rental portfolio and amortised repayment structure of the debt. CRISIL Ratings continues to factor in the annual dividend that DLF will receive from DCCDL to further cushion liquidity.

 

ESG profile

The environment, social and governance (ESG) profile of DLF supports its strong credit risk profile.

The real estate sector has a significant impact on the environment as a result of high emissions, waste generation and impact on land and biodiversity. The impact on social factors is indicated by labour-intensive operations and safety issues on account of construction-related activities.

DLF has an ongoing focus on strengthening various aspects of its ESG profile.

 

Key ESG highlights:

  • DLF plans to reduce energy intensity in its rental assets (energy consumption per square foot of rental portfolio) by 15% by fiscal 2030 using fiscal 2020 as the baseline and increase renewable energy intensity in its rental assets by 20% by fiscal 2025 using fiscal 2020 as the baseline.
  • DLF also plans to ensure zero harm - that is, zero fatalities resulting from operations - each year. Its loss time injury frequency rate was nil in fiscal 2022.
  • On the operational side:
  • DLF promotes local sourcing of raw materials within the organisation and among its supply chain partners to reduce emissions associated with transport and logistics.
  • The company has implemented solid waste management technology to recycle house garbage and turn it into manure, which is used for horticulture.
  • DLF is focused on effective management of water quality and usage across the lifecycle of its assets. It has installed zero-discharge sewage treatment plants at multiple sites across its portfolio.
  • The governance structure of DLF is characterised by 50% of its board comprising independent directors, split into the chairman and chief executive officer (CEO) positions, presence of an investor grievance redressal cell and extensive disclosures

 

There is growing importance of ESG among investors and lenders. The company’s commitment to ESG principles will play a key role in enhancing stakeholder confidence given its high foreign portfolio investor shareholding and access to capital markets.

Outlook: Positive

CRISIL Ratings expects DLF is likely to generate healthy cash flow through new launches, liquidation of inventory in the absence of any large, debt-funded capex and pursuit of short-cycle projects while continuing to benefit from its strong market position and strengthened balance sheet.

Rating Sensitivity factors

Upward factors

  • Sustenance of improved operating performance and cash flow, driven by higher sales in residential projects and healthy liquidation of inventory in the absence of any large, debt-funded capex
  • Sustained focus on short-cycle projects, thus limiting project execution and funding risks
  • Better operating performance leading to significant and sustained deleveraging and strengthening of the financial risk profile, with debt to total assets sustaining under 15% and lower refinancing requirement

 

Downward factors

  • Sharp decline in the operating cash flow, triggered by slackened saleability of ongoing and proposed projects or delays in project execution
  • Weakening of the financial risk profile, driven by lower cash flow or higher capex leading to debt/total assets exceeding 30%

About the Company

DLF is one of the oldest and largest real estate companies in India. It has a diverse asset portfolio across the real estate segment and is further expanding its presence across the country. The company has experience in developing real estate projects across business and customer segments.

 

DLF, on a standalone basis, will continue to focus on value and premium housing (independent floors) and commercial projects in the near term, which are short gestation projects. The company has launched multiple such projects in the Gurugram market; these projects have been well received. An aggregate of 15-20 msf is planned across Gurugram, Chennai and the tricity area (Chandigarh, Panchkula and Mohali). A few commercial projects in a similar build-and-sell model would also be pursued.

 

For the three months ended June 30, 2022, DLF reported profit after tax (PAT) of Rs 469 crore on operating income of Rs 1,442 crore against Rs 337 crore and Rs 1140 crore, respectively, for the corresponding period of the previous fiscal.

Key Financial Indicators - DLF (Consolidated*)

As on/for the period ended March 31

Unit 

2022

2021

Revenue

Rs.Crore

5717

5414

PAT

Rs.Crore

1500

1083

PAT Margin

%

26.2

20.0

Adjusted debt/adjusted networth

Times

0.11

0.19

Interest coverage

Times

4.28

2.83

  *CRISIL Ratings adjusted numbers

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of allotment

Coupon

rate (%)

Maturity date

Issue size
(Rs crore)

Complexity

level

Rating assigned

with outlook

NA

Proposed Term Loan

NA

NA

NA

106

NA

CRISIL AA-/Positive

NA

Working capital Facility

NA

NA

NA

2352

NA

CRISIL AA-/Positive

NA

Non-Fund Based Limit*

NA

NA

NA

100

NA

CRISIL A1+

NA

Non-Fund Based Limit

NA

NA

NA

625

NA

CRISIL A1+

*Interchangeable with Working capital facility

Annexure - List of Entities Consolidated

(i)

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

 

Subsidiaries and partnership firms

 

 

1

Aaralyn Builders & Developers Private Limited

Full

Strong operational and financial linkages

2

Abheek Real Estate Private Limited

Full

Strong operational and financial linkages

3

merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

4

Abhigyan Builders & Developers Private Limited

Full

Strong operational and financial linkages

5

Abhiraj Real Estate Private Limited

Full

Strong operational and financial linkages

6

Abjayoni Estates Developers Private Limited

Full

Strong operational and financial linkages

7

merged with Atherol Builders & Developers Private Limited]

Full

Strong operational and financial linkages

8

Adana Builders & Developers Private Limited

Full

Strong operational and financial linkages

9

w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

10

Adeline Builders & Developers Private Limited

Full

Strong operational and financial linkages

11

Adsila Builders & Developers Private Limited

Full

Strong operational and financial linkages

12

Afaaf Builders & Developers Private Limited

Full

Strong operational and financial linkages

13

Akina Builders & Developers Private Limited

Full

Strong operational and financial linkages

14

Alana Builders & Developers Private Limited

Full

Strong operational and financial linkages

15

Alfonso Builders & Developers Private Limited

Full

Strong operational and financial linkages

16

merged with Hoshi Builders & Developers Private Limited]

Full

Strong operational and financial linkages

17

Americus Real Estate Private Limited

Full

Strong operational and financial linkages

18

Amishi Builders & Developers Private Limited

Full

Strong operational and financial linkages

19

Amon Estates Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

20

Ananti Builders & Construction Private Limited

Full

Strong operational and financial linkages

21

Angelina Real Estates Private Limited

Full

Strong operational and financial linkages

22

Anuroop Builders & Developers Private Limited

Full

Strong operational and financial linkages

23

merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

24

Ariadne Builders & Developers Private Limited

Full

Strong operational and financial linkages

25

Arlie Builders & Developers Private Limited

Full

Strong operational and financial linkages

26

Armand Builders & Constructions Private Limited

Full

Strong operational and financial linkages

27

Arva Builders & Developers Private Limited

Full

Strong operational and financial linkages

28

[merged with Akina Builders & Developers Private Limited]

Full

Strong operational and financial linkages

29

Atherol Builders & Developers Private Limited

Full

Strong operational and financial linkages

30

Ati Sunder Estates Developers Private Limited

Full

Strong operational and financial linkages

31

w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

32

Baal Realtors Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

33

Balint Real Estates Private Limited

Full

Strong operational and financial linkages

34

merged with Akina Builders & Developers Private Limited]

Full

Strong operational and financial linkages

35

Bellanca Builders & Developers Private Limited

Full

Strong operational and financial linkages

36

Benedict Estates Developers Private Limited

Full

Strong operational and financial linkages

37

Beyla Builders & Developers Private Limited

Full

Strong operational and financial linkages

38

Bhamini Real Estate Developers Private Limited

Full

Strong operational and financial linkages

39

Blanca Builders & Developers Private Limited

Full

Strong operational and financial linkages

40

Breeze Constructions Private Limited

Full

Strong operational and financial linkages

41

Cadence Builders & Constructions Private Limited

Full

Strong operational and financial linkages

42

Cadence Real Estates Private Limited

Full

Strong operational and financial linkages

43

Calista Real Estates Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

44

Camden Builders & Developers Private Limited [merged with

Full

Strong operational and financial linkages

45

Atherol Builders & Developers Private Limited]

Full

Strong operational and financial linkages

46

Chakradharee Estates Developers Private Limited

Full

Strong operational and financial linkages

47

Chamundeswari Builders Private Limited

Full

Strong operational and financial linkages

48

Chandrajyoti Estate Developers Private Limited

Full

Strong operational and financial linkages

49

Charon Elevators Private Limited [merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

50

Chevalier Builders & Constructions Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

51

Chrysilla Builders & Developers Private Limited [merged with Arlie Builders & Developers Private Limited]

Full

Strong operational and financial linkages

52

Cirila Builders and Constructions Private Limited [merged with Verano Builders & Developers Private Limited]

Full

Strong operational and financial linkages

53

Cyrano Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

54

Dae Real Estates Private Limited

Full

Strong operational and financial linkages

55

Daffodil Hotels Private Limited (b)

Full

Strong operational and financial linkages

56

Dalmia Promoters & Developers Private Limited

Full

Strong operational and financial linkages

57

Damalis Builders & Developers Private Limited

Full

Strong operational and financial linkages

58

DLF Exclusive Floors Private Limited (formerly Delanco Home and Resorts Private Limited)

Full

Strong operational and financial linkages

59

Delanco Realtors Private Limited

Full

Strong operational and financial linkages

60

Deltaland Buildcon Private Limited

Full

Strong operational and financial linkages

61

Demarco Developers and Constructions Private Limited

Full

Strong operational and financial linkages

62

DLF Aspinwal Hotels Private Limited

Full

Strong operational and financial linkages

63

DLF Builders and Developers Private Limited

Full

Strong operational and financial linkages

64

DLF Cochin Hotels Private Limited

Full

Strong operational and financial linkages

65

DLF Commercial Developers Limited

Full

Strong operational and financial linkages

66

DLF Property Developers Limited (formerly DLF Emporio Restaurants Limited)

Full

Strong operational and financial linkages

67

DLF IT Offices Chennai Private Limited

Full

Strong operational and financial linkages

68

DLF Estate Developers Limited

Full

Strong operational and financial linkages

69

DLF Garden City Indore Private Limited

Full

Strong operational and financial linkages

70

DLF Gayatri Home Developers Private Limited

Full

Strong operational and financial linkages

71

DLF Golf Resorts Limited

Full

Strong operational and financial linkages

72

DLF Home Developers Limited

Full

Strong operational and financial linkages

73

DLF Homes Goa Private Limited

Full

Strong operational and financial linkages

74

DLF Homes Panchkula Private Limited

Full

Strong operational and financial linkages

75

DLF Homes Services Private Limited

Full

Strong operational and financial linkages

76

DLF Info City Hyderabad Limited

Full

Strong operational and financial linkages

77

DLF Info Park (Pune) Limited

Full

Strong operational and financial linkages

78

DLF Luxury Homes Limited

Full

Strong operational and financial linkages

79

DLF Office Developers Private Limited [w.e.f. 23 July 2021] (c)

Full

Strong operational and financial linkages

80

DLF Phase-IV Commercial Developers Limited [merged with DLF Limited]

Full

Strong operational and financial linkages

81

DLF Projects Limited

Full

Strong operational and financial linkages

82

DLF Real Estate Builders Limited [merged with DLF Limited]

Full

Strong operational and financial linkages

83

DLF Recreational Foundation Limited

Full

Strong operational and financial linkages

84

DLF Residential Builders Limited [merged with DLF Limited]

Full

Strong operational and financial linkages

85

DLF Residential Developers Limited

Full

Strong operational and financial linkages

86

DLF Residential Partners Limited

Full

Strong operational and financial linkages

87

DLF Southern Towns Private Limited

Full

Strong operational and financial linkages

88

DLF Universal Limited

Full

Strong operational and financial linkages

89

DLF Utilities Limited

Full

Strong operational and financial linkages

90

Dome Builders & Developers Private Limited

Full

Strong operational and financial linkages

91

Domus Real Estate Private Limited

Full

Strong operational and financial linkages

92

Eastern India Powertech Limited

Full

Strong operational and financial linkages

93

Edward Keventer (Successors) Private Limited

Full

Strong operational and financial linkages

94

Elvira Builders & Constructions Private Limited

Full

Strong operational and financial linkages

95

Erasma Builders & Developers Private Limited w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

96

Ethan Estates Developers Private Limited w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

97

Fabrizio Real Estates Private Limited [merged with Vamil Builders & Developers Private Limited]

Full

Strong operational and financial linkages

98

Faye Builders & Constructions Private Limited

Full

Strong operational and financial linkages

99

First India Estates & Services Private Limited w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

100

Galleria Property Management Services Private Limited

Full

Strong operational and financial linkages

101

Garv Developers Private Limited

Full

Strong operational and financial linkages

102

Garv Promoters Private Limited

Full

Strong operational and financial linkages

103

Garv Realtors Private Limited

Full

Strong operational and financial linkages

104

Gavel Builders & Constructions Private Limited w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

105

Gaynor Builders & Developers Private Limited w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

106

Grism Builders & Developers Private Limited [merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

107

Hansel Builders & Developers Private Limited

Full

Strong operational and financial linkages

108

Hathor Realtors Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

109

Havard Builders & Developers Private Limited [merged with Akina Builders & Developers Private Limited]

Full

Strong operational and financial linkages

110

Hesper Builders & Developers Private Limited w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

111

Hestia Realtors Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

112

Hemadri Real Estate Developers Private Limited [till 18 August 2020] (d)

Full

Strong operational and financial linkages

113

Hoshi Builders & Developers Private Limited

Full

Strong operational and financial linkages

114

Hurley Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

115

Isabel Builders & Developers Private Limited

Full

Strong operational and financial linkages

116

Jayanti Real Estate Developers Private Limited

Full

Strong operational and financial linkages

117

Jesen Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

118

Jingle Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

119

Kambod Real Estates Private Limited [merged with Qabil Builders & Developers Private Limited]

Full

Strong operational and financial linkages

120

Karena Estates Developers Private Limited [merged with Vamil Builders & Developers Private Limited]

Full

Strong operational and financial linkages

121

Karida Real Estates Private Limited

Full

Strong operational and financial linkages

122

Ken Buildcon Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

123

Keyna Builders & Constructions Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

124

Kokolath Builders & Developers Private Limited

Full

Strong operational and financial linkages

125

Kolkata International Convention Centre Limited

Full

Strong operational and financial linkages

126

Lada Estates Private Limited

Full

Strong operational and financial linkages

127

Laraine Builders & Constructions Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

128

Latona Builders & Constructions Private Limited

Full

Strong operational and financial linkages

129

Laxmibanta Estates Developers Private Limited [merged with Sagardutt Builders & Developes Private Limited]

Full

Strong operational and financial linkages

130

Lear Builders & Developers Private Limited

Full

Strong operational and financial linkages

131

Lempo Buildwell Private Limited

Full

Strong operational and financial linkages

132

Liber Buildwell Private Limited

Full

Strong operational and financial linkages

133

Livana Builders & Developers Private Limited

Full

Strong operational and financial linkages

134

Lizebeth Builders & Developers Private Limited

Full

Strong operational and financial linkages

135

Lodhi Property Company Limited

Full

Strong operational and financial linkages

136

Luvkush Builders Private Limited [merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

137

Mariabella Builders & Developers Private Limited

Full

Strong operational and financial linkages

138

Melosa Builders & Developers Private Limited

Full

Strong operational and financial linkages

139

Mens Buildcon Private Limited

Full

Strong operational and financial linkages

140

Milda Buildwell Private Limited

Full

Strong operational and financial linkages

141

Mohak Real Estate Private Limited

Full

Strong operational and financial linkages

142

Morgan Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

143

Morina Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

144

Morven Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

145

Mufallah Builders & Developers Private Limited

Full

Strong operational and financial linkages

146

Mujaddid Builders & Developers Private Limited [merged with Akina Builders & Developers Private Limited]

Full

Strong operational and financial linkages

147

Muriel Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

148

Musetta Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

149

Nadish Real Estate Private Limited

Full

Strong operational and financial linkages

150

Naja Builders & Developers Private Limited

Full

Strong operational and financial linkages

151

Naja Estates Developers Private Limited

Full

Strong operational and financial linkages

152

Narooma Builders & Developers Private Limited

Full

Strong operational and financial linkages

153

Nellis Builders & Developers Private Limited

Full

Strong operational and financial linkages

154

Niabi Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

155

Nilima Real Estate Developers Private Limited [merged with Atherol Builders & Developers Private Limited]

Full

Strong operational and financial linkages

156

Niobe Builders & Developers Private Limited

Full

Strong operational and financial linkages

157

Nudhar Builders & Developers Private Limited

Full

Strong operational and financial linkages

158

Ophira Builders & Developers Private Limited

Full

Strong operational and financial linkages

159

Oriel Real Estates Private Limited

Full

Strong operational and financial linkages

160

Paliwal Developers Limited

Full

Strong operational and financial linkages

161

Pariksha Builders & Developers Private Limited

Full

Strong operational and financial linkages

162

Peace Buildcon Private Limited [merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

163

Pegeen Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

164

Phoena Builders & Developers Private Limited

Full

Strong operational and financial linkages

165

Pyrite Builders & Constructions Private Limited

Full

Strong operational and financial linkages

166

Qabil Builders & Constructions Private Limited

Full

Strong operational and financial linkages

167

Qabil Builders & Developers Private Limited

Full

Strong operational and financial linkages

168

Rachelle Builders & Constructions Private Limited

Full

Strong operational and financial linkages

169

Raeks Estates Developers Private Limited

Full

Strong operational and financial linkages

170

Rajika Estate Developers Private Limited [merged with Uncial Builders & Constructions Private Limited]

Full

Strong operational and financial linkages

171

Rinji Estates Developers Private Limited [merged with Hoshi Builders & Developers Private Limited]

Full

Strong operational and financial linkages

172

Riveria Commercial Developers Limited

Full

Strong operational and financial linkages

173

Rochelle Builders & Constructions Private Limited

Full

Strong operational and financial linkages

174

Rosalind Builders & Constructions Private Limited [merged with Atherol Builders & Developers Private Limited]

Full

Strong operational and financial linkages

175

Royalton Builders & Developers Private Limited

Full

Strong operational and financial linkages

176

Rujula Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

177

Sagardutt Builders & Developers Private Limited

Full

Strong operational and financial linkages

178

Saket Holidays Resorts Private Limited

Full

Strong operational and financial linkages

179

Seamless Constructions Private Limited

Full

Strong operational and financial linkages

180

Senymour Builders & Constructions Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

181

Shikhi Estates Private Limited [ merged with Qabil Builders & Developers Private Limited]

Full

Strong operational and financial linkages

182

Shivaji Marg Maintenance Services Limited

Full

Strong operational and financial linkages

183

Skyrise Home Developers Private Limited

Full

Strong operational and financial linkages

184

Snigdha Builders & Constructions Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

185

Sugreeva Builders & Developers Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

186

Talvi Builders & Developers Private Limited

Full

Strong operational and financial linkages

187

Tane Estates Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

188

Tatharaj Estates Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

189

Tiberias Developers Limited

Full

Strong operational and financial linkages

190

Uncial Builders & Constructions Private Limited

Full

Strong operational and financial linkages

191

Unicorn Real Estate Developers Private Limited

Full

Strong operational and financial linkages

192

Urvasi Infratech Private Limited

Full

Strong operational and financial linkages

193

Vamil Builders & Developers Private Limited

Full

Strong operational and financial linkages

194

Verano Builders & Developers Private Limited

Full

Strong operational and financial linkages

195

Vibodh Developers Private Limited

Full

Strong operational and financial linkages

196

Vismay Builders & Developers Private Limited [merged with Ananti Builders & Construction Private Limited]

Full

Strong operational and financial linkages

197

Vkarma Capital Investment Management Company Private Limited

Full

Strong operational and financial linkages

198

Vkarma Capital Trustee Company Private Limited

Full

Strong operational and financial linkages

199

Webcity Builders & Developers Private Limited

Full

Strong operational and financial linkages

200

Zanobi Builders & Constructions Private Limited

Full

Strong operational and financial linkages

201

Zebina Real Estates Private Limited [w.e.f. 11 June 2021] (a)

Full

Strong operational and financial linkages

202

Zima Builders & Developers Private Limited

Full

Strong operational and financial linkages

 

 

 

 

(ii)

Partnership Firms (Accounted for as Subsidiaries)

 

 

1.

DLF Commercial Projects Corporation

Equity Method

Proportionate consolidation

2.

DLF Gayatri Developers

Equity Method

Proportionate consolidation

3.

DLF Green Valley

Equity Method

Proportionate consolidation

4.

DLF Office Developers [till 22 July 2021] (c)

Equity Method

Proportionate consolidation

5.

Rational Builders and Developers

Equity Method

Proportionate consolidation

 

 

 

 

(iii)

Joint Ventures (JV) and Joint Operations (JO)/ Associates

 

 

 

Joint ventures

 

 

1.

DLF Midtown Private Limited (JV)

Equity Method

Proportionate consolidation

2.

DLF SBPL Developers Private Limited (JV)

Equity Method

Proportionate consolidation

3.

DLF Urban Private Limited (JV)

Equity Method

Proportionate consolidation

4.

DESIGNPLUS GROUP (JV) Comprising investment in Designplus Associates Services Private Limited (JV) along with its following subsidiary:

Equity Method

Proportionate consolidation

4.1

Spazzio Projects and Interiors Private Limited (JV)

 

 

5.

Joyous Housing Limited (JV)

Equity Method

Proportionate consolidation

6.

Arizona Globalservices Private Limited (A) (e)

Equity Method

Proportionate consolidation

7.

Aadarshini Real Estate Developers Private Limited

Equity Method

Proportionate consolidation

8.

Banjara Hills Hyderabad Complex (JO)

Equity Method

Proportionate consolidation

9.

GSG DRDL Consortium (JO)

Equity Method

Proportionate consolidation

10.

DCCDL GROUP (JV) Comprising investment in DLF Cyber City Developers Limited along with its following subsidiaries and joint venture:

Equity Method

Proportionate consolidation

(i)

DLF Assets Limited

Equity Method

Proportionate consolidation

(ii)

DLF City Centre Limited

Equity Method

Proportionate consolidation

(iii)

DLF Emporio Limited

Equity Method

Proportionate consolidation

(iv)

DLF Info City Chennai Limited

Equity Method

Proportionate consolidation

(v)

DLF Info City Developers (Chandigarh) Limited

Equity Method

Proportionate consolidation

(vi)

DLF Info City Developers (Kolkata) Limited

Equity Method

Proportionate consolidation

(vii)

DLF Info Park Developers (Chennai) Limited

Equity Method

Proportionate consolidation

(viii)

DLF Lands India Private Limited

Equity Method

Proportionate consolidation

(ix)

DLF Power & Services Limited

Equity Method

Proportionate consolidation

(x)

DLF Promenade Limited

Equity Method

Proportionate consolidation

(xi)

Fairleaf Real Estate Private Limited (formerly YG Realty Private Limited)

Equity Method

Proportionate consolidation

(xii)

Nambi Buildwell Limited [formerly known as Nambi Buildwell Private Limited]

Equity Method

Proportionate consolidation

(xiii)

Paliwal Real Estate Limited

Equity Method

Proportionate consolidation

(xiv)

Richmond Park Property Management Services Limited [merged with DLF Emporio Limited]

Equity Method

Proportionate consolidation

*as on March 31, 2022

Notes:

a) During the year, the Group acquired 100% equity stake in 35 Indian companies. Consequently, these companies became wholly-owned subsidiaries of the Group w.e.f. 11 June 2021.

b) During the year, the Group has disposed-off its subsidiary Daffodil Hotels Private Limited.

c) During the year, partnership firm ‘DLF Office Developers’ is converted into a Private Limited Company i.e. DLF Office Developers Private Limited’ w.e.f. 23 July 2021.

d) During the previous year, the Group disposed-off its subsidiary Hemadri Real Estate Developers Private Limited.

e) DLF Home Developers Limited, one of the wholly-owned subsidiary Company of the Group holds Compulsorily Convertible Preference Shares (CCPS) in Arizona Globalservices Private Limited (Arizona). These are convertible at the option of the investor. If these are converted (also considering the terms and conditions of the agreement), it will assure significant influence over Arizona by the Group. Hence, Arizona has been classified as an associate and the Group recognises its share in net assets through equity method.

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 2458.0 CRISIL AA-/Positive 17-02-22 CRISIL A1+ / CRISIL AA-/Stable 25-08-21 CRISIL A1+ / CRISIL AA-/Stable 30-07-20 CRISIL A+/Stable / CRISIL A1 30-01-19 CRISIL A+/Stable / CRISIL A1 CRISIL A+/Stable / CRISIL A1
      --   --   -- 06-03-20 CRISIL A+/Stable / CRISIL A1   -- --
      --   --   -- 30-01-20 CRISIL A+/Stable / CRISIL A1   -- --
Non-Fund Based Facilities ST 725.0 CRISIL A1+ 17-02-22 CRISIL A1+ 25-08-21 CRISIL A1+ 30-07-20 CRISIL A1 30-01-19 CRISIL A1 CRISIL A1
      --   --   -- 06-03-20 CRISIL A1   -- --
      --   --   -- 30-01-20 CRISIL A1   -- --
Non Convertible Debentures LT   --   --   -- 06-03-20 Withdrawn 30-01-19 CRISIL A+/Stable CRISIL A+/Stable
      --   --   -- 30-01-20 CRISIL A+/Stable   -- --
Short Term Debt ST   --   --   -- 06-03-20 Withdrawn 30-01-19 CRISIL A1 CRISIL A1
      --   --   -- 30-01-20 CRISIL A1   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Non-Fund Based Limit 150 ICICI Bank Limited CRISIL A1+
Non-Fund Based Limit 200 IDBI Bank Limited CRISIL A1+
Non-Fund Based Limit 275 Punjab National Bank CRISIL A1+
Non-Fund Based Limit* 100 State Bank of India CRISIL A1+
Proposed Term Loan 106 Not Applicable CRISIL AA-/Positive
Working Capital Facility 250 DBS Bank Limited CRISIL AA-/Positive
Working Capital Facility 500 Hongkong & Shanghai Banking Co CRISIL AA-/Positive
Working Capital Facility 920 ICICI Bank Limited CRISIL AA-/Positive
Working Capital Facility 367 Standard Chartered Bank Limited CRISIL AA-/Positive
Working Capital Facility 315 State Bank of India CRISIL AA-/Positive
This Annexure has been updated on 23-Feb-23 in line with the lender-wise facility details as on 03-Feb-23 received from the rated entity.
*Interchangeable with Working capital facility
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
CRISILs Rating criteria for Real Estate Developers
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation

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