DLF Banks On Sale Of Finished Inventory To Reduce Debt
DLF’s net debt stands at Rs 7,000 crore, its Group Chief Financial Officer Saurabh Chawla said.
DLF Ltd. expects to complete the sale of its inventory worth Rs 13,500 crore in four-to-five years that will ramp up its cash flow and help pare debt, its Group Chief Financial Officer Saurabh Chawla said.
The company’s net debt currently stands at Rs 7,000 crore, Chawla told BloombergQuint in an interaction. “Two actions—raising funds through a qualified institutional placement this fiscal and the infusion of about Rs 2,250 crore by the promoters when they convert their warrants—may reduce debt to a three-figure number.”
The real-estate company had said in an exchange notification dated Aug. 10 that it’s “focusing on monetisation of finished inventory which would result in surplus cash flow that shall primarily be utilised for debt reduction”. “DLF is working towards achieving net zero debt in its development business in the near future.”
“The balance cash surplus,” the statement said, “will be utilised by the company to re-invest in development of new projects for both sale and lease business.”
Key earnings highlights (Q1, YoY):
- Net profit up 56 percent at Rs 172.2 crore.
- Revenue down 26.4 percent to Rs 1,507.3 crore.
- Ebitda down 65.8 percent to Rs 308.5 crore.
- Margin at 20.5 percent versus 44.11 percent.
Shares of DLF ended at Rs 214.80 on Monday at the BSE, a near 2.24 percent rise.