NEW DELHI: Realty giant DLF’s sales bookings increased by 7 per cent last fiscal to Rs 4,070 crore, but fell short of its target as volumes declined due to the sluggish property market.
The company’s net debt fell by Rs 1,400 crore during the March 2014 quarter to Rs 18,526 crore from Rs 19,926 crore at the end of December 2013 on the back of non-core assets sale.
In an analysts call, DLF said sales booking increased to Rs 4,070 crore in 2013-14 fiscal against Rs 3,815 crore in the previous year.
However, in volume terms, sales bookings fell to 3.74 million sq ft last fiscal against 7.23 million sq ft in 2012-13.
“We have done better in value terms (compared to last year) but lagged behind in volumes,” DLF Executive Director Finance Saurabh Chawla told analysts.
Sales booking in value terms was lower than the Rs 5,000 crore that the company had initially expected, he added.
“Slowdown in the economic environment resulted in moderate achievement against sales volume target. This is expected to continue for at least next two quarters before we see improvement on the ground. Full revival is expected early next fiscal year,” DLF said in an accompanying presentation.
DLF did not give any guidance of sales bookings for this fiscal and would disclose the target in September-October. It expects demand to rise from the second half of this fiscal on improved sentiments following formation of the new government.
Sales will become “normal” after 18 months, it added.
DLF reported a consolidated net profit of Rs 219.68 crore for the quarter ended March, 2014 on the back of gains from sale of hotel chain Aman resorts. It had registered a net loss of Rs 4.19 crore in the year-ago period.
On debt, DLF Chief Financial Officer (CFO) Ashok Tyagi told analysts that borrowings would continue at around Rs 18,500 crore level through this fiscal.
The company cut debt by Rs 1,400 crore in the March 2014 quarter helped by funds raised from sale of hotel chain Amanresorts, except Lodhi Road property, for about Rs 2,200 crore. It also settled the dispute with DDA on the Dwarka Convention Centre at Rs 676 crore. -PTI
