India's largest realty firm DLF on Friday said its net debt increased by nearly Rs 1,000 crore (Rs 10 billion) in the July-September quarter to Rs 22,519 crore (Rs 225.19 billion), mainly due to delayed receipt of payments related to non-core asset sales.
The company's net debt stood at Rs 21,524 crore (Rs 215.24 billion) as of June 30 this year. DLF said it aims to reduce its debt by Rs 3,000 crore (Rs 30 billion) by the end of this fiscal.
"Increase in net debt is largely due to deferment of divestment proceeds expected to be received in Q2 to Q3, that is Noida IT park and Pune IT SEZ," DLF said in a presentation.
That apart, the company has attributed the rise in borrowing to payments, such as taxes, normally due in the second quarter and the impact of foreign exchange rate fluctuation.
During the quarter, the company availed fresh loans of Rs 1,438 crore (Rs 14.38 billion). The impact due to forex fluctuation stood at Rs 142 crore (Rs 1.42 billion), the presentation pointed out.
Talking about its debt reduction plans, DLF said it is targeting to reduce its net debt to Rs 19,500 crore (Rs 195 billion) and the company is in the process of raising Rs 3,000 crore (Rs 30 billion) through the sale of non-core assets such as its Noida IT park, Pune IT SEZ and hospitality business.
The company plans to sell its super-luxury hospitality business Aman Resorts for about Rs 2,000-2,500 crore (Rs 20-25 billion), sources had said earlier.
On Thursday, DLF reported a 11 per cent decline in its consolidated net profit to Rs 372.41 crore (Rs 3.72 billion) for the quarter ended September 30, mainly due to higher tax expenses and interest charges.
Consolidated net sales during the second quarter, however, rose by 6.9 per cent to Rs 2,532.41 crore (Rs 25.32 billion).
The net profit fell during the quarter as the company's tax expenses doubled to Rs 147.49 crore (Rs 1.47 billion) from Rs 73.41 crore (Rs 734.1 million) in the year-ago period. Finance charges also rose by 21 per cent to Rs 526.30 crore (Rs 5.26 billion) from Rs 433.76 crore (Rs 4.33 billion) in the review period.
DLF raised Rs 245 crore (Rs 2.45 billion) in the second quarter through the sale of non-core assets, taking the total realisation from such sales to Rs 410 crore (Rs 4.10 billion) till September this fiscal.
Till last fiscal, the company had raised Rs 3,070 crore (Rs 30.70 billion) from the sale of non-core assets such as hotel plots and plans to raise another Rs 7,000 crore (Rs 70 billion) in the next 2-3 years to reduce its huge debt.
