New Delhi February 24, 2014: Realty major DLF‘s sales bookings rose 46% to Rs 3,760 crore during April-December period of this financial year despite a slowdown in the real estate market.
The company had sold properties worth Rs 2,575 crore in the year-ago period.
“Our sales bookings have grown significantly because of successful launch of high value project ‘Crest and Camellias’ in DLF Phase-V Gurgaon in the initial 4-5 months of current fiscal,” DLF Chief Financial Officer (CFO) Ashok Tyagi told PTI.
In the first quarter of 2013-14, DLF’s sales booking stood at Rs 2,430 crore but the same fell to Rs 730 crore and Rs 600 crore in the subsequent two quarters.
For the entire last fiscal, sales bookings stood at Rs 3,815 crore.
Tyagi said sales have been affected due to high interest rates and slowdown in the economy, adding that he expects the adverse economic conditions to continue till September this year, resulting in muted sales of real estate products.
On debt, he said the net debt would be in the range of Rs 17,500-18,000 crore in the short-term.
DLF has reduced its net debt by over Rs 2,500 crore to Rs 17,400 crore with the help from sale of non-core assets.
Asked about finance cost, Tyagi said: “Amanresorts deal and refund from DDA have happened this quarter only. So there will be a reduction in interest cost from next fiscal.”
At present, the company is incurring about Rs 600 crore a quarter as finance charges.
Recently, DLF sold Amanresorts for USD 358 million (over Rs 2,200 crore) and also settled the dispute with the Delhi Development Authority (DDA) on the Dwarka Convention Centre project with a refund of Rs 676 crore.
The company booked a pre-tax loss of Rs 400 crore in the settlement with DDA for Dwarka project, which it bagged in 2007 but was later scrapped.
The provision of loss dragged the DLF’s consolidated net profit by 49% to Rs 145 crore for the third quarter of this fiscal.
DLF has a total developable potential of 312 million sq ft and out of that 60 million sq ft of projects area was under construction at the end of the December quarter.PTI
