Real estate firms tread cautiously in Sept quarter
The consolidated net debt of eight real estate companies rose by just 2% in the second quarter ended September, while their interest outgo fell by a sharp 11%, after the central bank cut key lending rates by 50 basis points in April, making loans cheaper.
DLF, the country’s largest real estate developer, saw its net debt rise by R540 crore or 2.4% sequentially to R23,220 crore in the September quarter, on dividend outflows and government charges. DLF has announced it has received R2,000 crore from its divestment of a National Textile Corporation mill land in Lower Parel, Mumbai, following which its debt, as on date, stands at R21,220 crore.
Though DLF saw a surge of 19% in bookings during July-September period compared with April-June, lower sales dented the consolidated net profit of the company, which declined by a steep 63% to R139 crore on year-on-year basis.
Meanwhile, debt of companies like Unitech and Mumbai-based Housing Development & Infrastructure (HDIL) has remained flat sequentially, at R5,565 crore and R3,801.5 crore, respectively, in September.
According to Sandipan Pal, an analyst with Motilal Oswal, Unitech has some respite as it has managed to refinance its debt and is expected to repay R700-800 crore by end of 2012-2013 fiscal.
HDIL, too, had said in the last quarter it is on track to reduce its debt and wants
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