Despite increase in net debt during the quarter with net D/E at 0.12x (vs 0.09x in 1QFY20), it is within acceptable limits with the company also committed towards further reduction in leverage over FY20-21E. Residual unsold inventory stands at Rs 101bn. Total residual collection on sold inventory is pegged at Rs 27.4bn vs. Rs 17.5bn of balance construction costs. DLF's luxury portfolio is expected to see increased momentum in 2HFY20E. With strong balance sheet, robust lease momentum and residential pre-sales expected to pick-up in 2HFY20, DLF is well placed. We maintain BUY. Key risks (1) Delay in ready inventory monetization (2) Inability to fully utilize mark-to-market potential from rental assets. We maintain BUY on DLF post positive pre-sales trajectory for a second consecutive quarter across the development portfolio, settlement of DCCDL dues and strong lease rental momentum. Our SOTP-based TP is maintained at Rs 258/sh. DLF balance sheet is strong post QIP and promoter fund infusion.