India?s largest real estate company by market capitalisation, said on Saturday that its current net debt stands at about Rs 17,400 crore, down by about Rs 2,500 crore, following the sale proceeds from luxury hotel chain Amanresorts, and a refund from Delhi Development Authority (DDA).
?Current net debt is at Rs 17,400 crore (approximately). We maintain the FY14 guidance of net debt of Rs 17,500-18,000 crore,” DLF said in an analyst presentation.
However, at the end of December 2013, the company?s net debt has increased to Rs 19,926 crore from R1,9508 crore as on September 30, 2013. This excludes non-core realisation of Rs 2,275 crore from the Aman transaction and R676 crore of DDA. ?With the closure of Amanresorts and settlement of Dwarka project with DDA, we have achieved our net debt guidance,? said Ashok Tyagi, CFO of DLF.
On Friday, DLF?s net profit for the October-December 2013 period was almost halved to R145 crore on a y-o-y basis due to a one time loss provision of R411 crore related to the settlement with DDA, and high finance cost.
On February 9, the company announced the sale of Amanresorts (excluding Lodhi property) for $358 million. The company has also settled the dispute with DDA on the Dwarka Convention Centre project with a refund of R676 crore, it said on Friday. DLF had capitalised R1,075 crore in the DDA project, while it got a refund of only R675 crore from the authority, it said. The management said on Saturday that with the sale of Aman, the first stage of sale of non-core assets was complete, but DLF will inform about the second round of asset sales once market conditions improve.
Besides, DLF said that the company is expecting to bring at least one of its Commercial Mortgage Backed Security (CMBS) placement of around R900 crore-950 crore, within this quarter. Saurabh Chawla, executive director (finance), said DLF has received indicative ratings for the same from rating agencies, and the provisional rating is awaited next week, post which it will start pre-marketing the instrument.
Giving a business outlook, Tyagi said that while recovery on residential sales will take few more of quarters, the rental business was growing well.
