DLF reduces debt by Rs 2,000 crore

DLF has reduced its net debt by Rs 2,000 crore (Rs 20 billion) during the ongoing quarter to Rs 21,220 crore (Rs 212 billion) on the back of sale of its prime land in Mumbai to Lodha Developers.

Its current net debt stands at Rs 21,220 crore (Rs 212 .2 billion) as against Rs 23,220 crore (Rs 232.2 billion) as on September 30, according to an analyst presentation by the company.

The National-Capital based realty major will also launch 9-10 million sq ft of real estate projects during the second half of the current financial year.

"As on date, net debt position is Rs 21,220 crore (Rs 212.2 billion). . . With the consummation of the balance divestments, the net debt of Rs 18,500 as on March 31 is highly achievable," it added.

The net debt, however, went up by Rs 540 crore (Rs 5.4 billion) during the July-September period to Rs 23,220 crore (Rs 232.2 billion), the company said.

Its net debt stood at Rs 22,680 crore (Rs 226.8 billion) as on June 30.

DLF attributed the increase in net debt to "one-time outflows such as dividend of Rs 450 crore (Rs 4.5 billion) and other payments such as government charges amounting to Rs 350 crore (Rs 3.5 billion)".

On non-core asset sale, the company said it is in "advance stage of negotiation and documentation on Aman Resorts transaction", besides finalising the wind energy business sale, which already has approval of the shareholders.

"Other miscellaneous transactions worth Rs 500 crore (Rs 5 billion) are also underway with expected closure within FY'13," it added.

Earlier this week, the company had said it sold non-core assets worth Rs 560 crore (Rs 5.6 billion) in July-September quarter, taking the total divestments proceeds till date to Rs 5,773 crore (Rs 57.73 billion).

The company had also said it continues to make steady progress on the balance non-core assets divestments, which include Aman Resorts and Wind businesses and "is very confident of their closure within the FY'13".

In the country's biggest realty deal this year, DLF had sold 17 acres of prime land in Mumbai to Lodha Developers for Rs 2,727 crore (Rs 27.27 billion), almost four times higher than the price it had paid in 2005

on purchase.

Stating that the 'worst is behind' it, DLF said: "The company is now well positioned to 'take-off' as it moves towards new launches in excess of 9 million sq ft during the second half of FY'13. . . Given previous successes, focus on plotted launches is to continue."

Out of the planned new projects, 8.5 million sq ft of luxury and premium group housing properties will be launched in Gurgaon.

Bengaluru and Lucknow or Mullanpur will also see 1 million sq ft of new launches each, it added.

DLF further said launching of 'high impact' projects may have positive impact on the financials of this fiscal, and will give 'high degree of visibility of cash flows and earnings' over the next 3-4 years.

For the new launches, necessary approvals from required authorities, planning and cost estimates are continuing as per schedule, the DLF presentation said.

"All headwinds in the form of escalated interest costs, cost inflations and scarcity of labour (delayed execution) are behind us. Large number of previous projects (about 15 million sq ft) are getting delivered in H2 of FY'13," it added.

On Monday, DLF had reported 62.81 per cent fall in its consolidated net profit for the quarter ended September 30, 2012, at Rs 138.51 crore (Rs 1.38 billion) due to decline in sales.

It had posted a net profit of Rs 372.41 crore (Rs 3.72 billion) in the corresponding period last year.

The consolidated sales during the second quarter fell by 19.46 per cent to Rs 2,039.54 crore (Rs 20.39 billion) from Rs 2,532.41 crore (Rs 25.32 billion) in the year-ago period.

The company's hotel and insurance businesses suffered a combined loss of Rs 82.88 crore (Rs 828.8 million) during July-September period of 2012-13 financial year.

During the second quarter, DLF registered sales booking of 1.59 million sq ft of area, the statement said.