DLF cuts net debt by 34% in Q4 to ₹4,483 crore
2 min read . Updated: 27 May 2019, 01:44 PM IST- In March, DLF raised ₹3,173 crore by selling shares to institutional investors through QIP offer
- DLF has an unsold inventory of around ₹11,650 crore
New Delhi: Realty major DLF reduced its net debt by 34% during the fourth quarter of last fiscal to ₹4,483 crore with the help of funds raised from selling shares to institutional investors.
According to an investors presentation, DLF's net debt has come down "from ₹7,224 crore in Q3 of FY19 to ₹4,483 crore in Q4 of FY19".
In March, DLF raised ₹3,173 crore by selling shares to institutional investors through its qualified institutional placement (QIP) offer. The company had offered 17.3 crore shares to investors at an issue price of ₹183.40 per share.
DLF's net debt would further come down during the current quarter with likely infusion of ₹2,250 crore into the company by promoters.
In December 2017, the promoters had infused ₹9,000 crore into the company and promised to pump in ₹2,250 crore more.
The fund infusion was after they sold their entire stake in DLF's rental arm DLF Cyber City Developers Ltd (DCCDL) for ₹11,900 crore.
This big-ticket deal included the sale of a 33.34%stake in the DCCDL to Singapore's sovereign wealth fund GIC for ₹8,900 crore and buyback of remaining shares worth ₹3,000 crore by DCCDL.
Against this infusion, DLF had issued compulsorily convertible debentures and warrants to promoters entities.
According to the presentation, DLF is targeting a 10% increase in sales bookings in the current 2019-20 fiscal year at around ₹2,700 crore, on hopes of increase in housing demand.
Sales bookings of the company more than doubled to ₹2,435 crore in 2018-19 from ₹1,000 crore in the previous year.
The company is "targeting sales of ₹2,700 crore in 2019-20 (i.e 10% increase over 2018-19)," DLF said in an analyst presentation.
DLF has an unsold inventory of around ₹11,650 crore, it added.
"The company continued to see good sales in the residential segment. We have started monetising our ready-to-occupy inventory across the country in the premium and luxury segments," DLF said.
The company is now gearing towards the next cycle of development and is planning to build 17 million sq ft of residential and commercial space in the near future.
Earlier this week, DLF reported a 76% jump in consolidated net profit to ₹436.56 crore for March quarter from ₹247.73 crore in the year-ago period.
Total income rose to ₹2,660.95 crore as compared with ₹1,845.92 crore in the year-ago period.
For entire 2018-19, net profit declined to ₹1,319.22 crore from ₹4,463.86 crore in the previous fiscal. The drop in profit was because of exceptional gain from sales of rental business in 2017-18.
However, total income rose to ₹9,029.41 crore in the last fiscal from ₹7,663.71 crore in 2017-18.
This story has been published from a wire agency feed without modifications to the text.
