DLF’s sales bookings increased by 7 per cent to Rs 4,070 crore last fiscal, while its net debt fell by Rs 1,400 crore due to divestment of non-core assets.
Yesterday, DLF had reported a consolidated net profit of Rs 219.68 crore for the quarter ended March 31, 2014 on the back of gains from the sale of hotel chain Amanresorts. It had registered a net loss of Rs 4.19 crore in the year-ago period.
According to an analyst presentation, DLF’s sales bookings increased to Rs 4,070 crore in 2013-14 fiscal from Rs 3,815 crore in the previous year, amid slowdown in demand. In volume terms, sales bookings fell to 3.74 million sq ft during last fiscal against 7.23 million sq ft in 2012-13.
“Slowdown in the economic environment resulted in moderate achievement against sales volume target. This is expected to continue for at least next two quarters before we see improvement on the ground. Full revival is expected early next fiscal year,” DLF said.
On debt position, DLF said that its net debt stood at Rs 18,526 crore as of March 31, 2014 — a drop of Rs 1,400 crore from Rs 19,926 crore at the end of the December 2013 quarter.
Debt reduction was possible with the help of funds raised through divestment of luxury hospitality chain Amanresorts and settlement of dispute with Delhi Development Authority (DDA).
During January-March quarter, DLF sold Amanresorts, except Lodhi road property, for about Rs 2,200 crore. It also settled the dispute with DDA on the Dwarka Convention Center at Rs 676 crore. In 2013-14 fiscal, DLF raised Rs 5,930 crore through divestment of non-core assets.
“Given the current and future growth of annuity flows, the company is comfortable with the level of current net debt.
In the near term, tactical divestments of land may continue to support capex/land related charges so that net debt remains range bound (+/-) Rs 500 crore of the current levels,” the presentation added.
DLF said it would continue to focus on opportunities to improve the quality and tenure of debt through issuance of commercial mortgage backed security (CMBS) etc. It recently raised Rs 525 crore through CMBS to replace costlier debt.