DLF net debt rises to over Rs 19,000 cr

Aug 02 2014, 00:54 IST
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SummaryRealty giant DLF's net debt has increased by R538 crore during the quarter ended June to R19,064 crore due to capital expenditure and operational costs.

Realty giant DLF's net debt has increased by R538 crore during the quarter ended June to R19,064 crore due to capital expenditure and operational costs.

Net debt of the country's largest real estate firm rose to R19,064 crore as on June 30 from R18,526 crore as on March 31 this year, according to an analysts presentation.

DLF, which on Thursday reported a 29% fall in net profit to R127.77 crore for the April-June quarter of this fiscal, said that of the total, R240 crore of rise in net debt is attributable to capex, land and government charges and the rest to operations.

On the current outlook, DLF said it would aim to "keep the net debt range bound (+/- Rs 500 crore)" through divestments of land. It will target more CMBSs (Commercial Mortgage Backed Securities) in this fiscal to improve the quality of debt.

During the first quarter, DLF had completed the first CMBS issue in India. It privately placed CMBS of DLF Emporio and DLF Promenade amounting to Rs 900 crore with institutional debt investors such as mutual funds and insurance companies.

Earlier, sources had said that DLF plans to raise about R3,500 crore through CMBSs of its office properties.

In medium term, DLF said the attributable net debt to RentCo (commercial arm) will continue to increase as RentCo EBITDA rises. "Target is to make DevCo (residential arm) debt free," the presentation said.

On sales bookings, the presenation said the company achieved 0.38 million sq ft of gross sales worth Rs 308 crore during April-June period, against 0.44 million sq ft worth Rs 310 crore in the previous quarter.

"Sales volume in most geographies shall continue at a moderate pace similar to FY14. As market improves, the company shall monetise this mature stock worth Rs 4,000 crore," the presentation said.

DLF would focus more on selling more mature stock in existing projects rather than launching new projects.

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