DLFs 4QFY17 APAT came in 17% below estimates. The Residential segment continues to reel under cost overruns in legacy projects completion, resulting in EBIDTA losses. The Rental seg is the key driver of profitability. The B/S continues to deteriorate on account of (1) Slowing pre-sales, (2) Cost overruns in legacy proj and (3) Construction step-up in proj nearing completion. This has resulted in Rs 28.9bn increase in net debt YoY.