India's largest realty firm DLF Ltd today said it sold properties worth Rs 2,430 crore in the April-June quarter, almost double than the previous quarter, and reduced net debt by over 6 per cent.
The company also said it is targetting to reduce to Rs 17,500 crore by the end of this fiscal, from Rs 20,369 crore as on June 30. In March, its debt was Rs 21,731 crore.
Late yesterday, DLF Ltd reported 38 per cent fall in net profit at Rs 181.19 crore for Q1, 2013-14 due to 60 per cent higher expenses on land and construction.
Income from operations, however, rose by 5 per cent to Rs 2,314 crore, as against Rs 2,198 crore in the Q1 of 2012-13.
"Although profit is lower than the year-ago period, there is significant improvement from a loss of Rs 4 crore in the previous quarter," DLF Group CFO Ashok Tyagi said.
DLF Ltd sales bookings in the housing segment jumped to Rs 2,430 crore during the April-June quarter, from Rs 1,240 crore in the previous quarter on strong response for its projects in Gurgaon, he added.
Meanwhile, in an analyst call today, DLF Executive Director (Finance) Saurabh Chawla said the company plans to raise funds through long-term bonds to replace the 5-year bank loan to cut down its cost of debt by 100-150 basis points.
DLF Ltd plans to raise about Rs 1,000 crore through commercial mortgage backed securities (CMBS) by including two retail assets to it. The investors in these bonds would be life insurance companies and pension funds.
Chawla said the debt could reduce to Rs 15,500 crore if the company closes the USD 300 million deal to sell hotel chain Amanresort to founder Adrian Zecha by March next year.
"The exclusivity contract with Zecha ended in June. We are in active engagement with 5-6 companies other than Zecha," Chawla said, adding that the deal size could increase.
He said the company is committed to the three year target of reaching