Realty major DLF's net debt reduced by 16 per cent during the April-June period to ₹2,259 crore from the previous quarter on the back of strong housing sales. Its net debt stood at ₹2,680 crore at the end of the last fiscal.
In an investor presentation, DLF said the company is “committed to further debt reduction in the medium term.” It asserted that the completed inventory and receivables from customers against sold units would be sufficient to discharge all current liabilities.
"New products to generate healthy cash flows; consistent surplus cash generation to bolster cash position," it added.
The gross debt fell to ₹3,900 crore as of June 30 from ₹4,755 crore at the end of the last fiscal. On the operational front, DLF's sales bookings doubled to ₹2,040 crore during the first quarter of this fiscal from ₹1,014 crore in the year-ago period. It is targeting a 10 per cent growth in its sales bookings to about ₹8,000 crore this fiscal.
DLF's sales bookings rose to ₹7,273 crore in 2021-22 from ₹3,084 crore in the preceding fiscal.
Housing demand is gradually getting consolidated towards those large branded developers who have a good track record of executing projects.
On Saturday, DLF Group Executive Director Aakash Ohri told investors in an analyst call that the company's sales bookings grew sharply in the June quarter and it expects momentum to continue. Asked whether the company will revise its sales bookings guidance upwards from ₹8,000 crore considering good growth in Q1, which is not typically strongest, Ohri had said: "We won't revise anything for now. We will continue to stick to that".
There are some headwinds like interest rates hike and therefore the company would not get carried away and keep the sales guidance as it is, he added.
DLF is the largest real estate company in terms of market capitalisation. It has so far developed more than 153 real estate projects, comprising over 330 million square feet of area.