DLF eyes bookings of `2,500 cr in FY19; to be debt free by March
New Delhi: India's largest realty firm DLF on Tuesday said it is targeting to more than double its sales bookings to Rs 2,500 crore during the current fiscal as also becoming debt free by next March.
DLF's net sales bookings stood at only Rs 1,000 crore last fiscal as it had suspended sales during May-October 2017 to comply with the new real estate law RERA.
In an analyst call, DLF's group CFO Saurabh Chawla gave a sales bookings guidance of Rs 2,000-2,500 crore for 2018-19. The figure may be revised upwards if housing demand improves.
The value of unsold inventories has declined to about Rs 14,000 crore from Rs 15,000 crore.
Chawla said DLF had a net debt of Rs 6,265 crore at the end of 2017-18. DLF would be debt free by March next year helped by capital infusion of Rs 2,250 crore from promoters and proposed sale of over 17 crore shares to institutional investors through QIP.
Sources had earlier said that DLF plans to launch QIP (Qualified Institutional Placement) in June to raise Rs 4,000-4,500 crore.
"Target is to achieve zero net debt by 31st March, 2019 from Rs 6,265 crore as of March 31, 2018. The company is expected to achieve zero net debt just by capital actions itself - through Qualified Institutional Placement 'QIP' of about 17.3 crore shares and residual inflow from promoters of Rs 2,250 crore," the company said in a presentation.
DLF promoters sold 40 per cent stake in the rental arm DLF Cyber City Developers Ltd (DCCDL) for nearly Rs 12,000 crore. The deal included sale of 33.33 per cent stake to GIC for about Rs 9,000 crore. Post this deal, DLF's stake in the DCCDL rose to 66.66 per cent from 60 per cent. Promoters are infusing fund into the DLF to make it debt free.
DLF's consolidated net profit rose by 66 per cent to Rs 247.73 crore in the fourth quarter of last fiscal despite lower sales. Its net profit was at Rs 149.14 crore in the year-ago period. Total income, however, fell to Rs 1,845.92 crore during January-March quarter of last fiscal from Rs 2,511.37 crore in the corresponding period of the previous year.
For entire 2017-18, the company's net profit jumped sharply to Rs 4,463.86 crore from Rs 714.79 crore in the previous year due to an exceptional gain on account of fair valuation of DLF's residual stake in its JV firm DCCDL.
Total income, however, fell to Rs 7,663.71 crore last fiscal, from Rs 8,940.51 crore in the 2016-17 financial year.