 "DLF")
Realty major DLF's net debt reduced by 16 per cent during the April-June period to Rs 2,259 crore from the previous quarter on the back of strong housing sales.
Its net debt stood at Rs 2,680 crore at the end of the last fiscal.
In an investor presentation, DLF said the company is "committed to further debt reduction in the medium term".
It asserted that the completed inventory and receivables from customers against sold units would be sufficient to discharge all current liabilities.
"New products to generate healthy cash flows; consistent surplus cash generation to bolster cash position," the presentation said.
The gross debt also fell to Rs 3,900 crore as of June 30 from Rs 4,755 crore at the end of the last fiscal.
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On the operational front, DLF's sales bookings doubled to Rs 2,040 crore during the first quarter of this fiscal from Rs 1,014 crore in the year-ago period.
It is targeting 10 per cent growth in its sales bookings to about Rs 8,000 crore this fiscal.
DLF's sales bookings rose to Rs 7,273 crore in 2021-22 from Rs 3,084 crore in the preceding fiscal.
Housing demand is gradually getting consolidated towards those large branded developers who have a good track record of executing projects.
On Saturday, DLF Group Executive Director Aakash Ohri told investors in an analyst call that the company's sales bookings grew sharply in the June quarter and it expects momentum to continue.
Asked whether the company will revise its sales bookings guidance upwards from Rs 8,000 crore considering good growth in Q1, which is not typically strongest, Ohri had said: "We won't revise anything for now. We will continue to stick to that".
There are some headwinds like interest rates hike and therefore the company would not get carried away and keep the sales guidance as it is, he added.
On Friday, DLF reported a 39 per cent increase in its consolidated net profit to Rs 469.57 crore in the quarter ended June on better sales.
Its net profit stood at Rs 337 crore in the year-ago period.
Its total income rose to Rs 1,516.28 crore in the first quarter of this fiscal from Rs 1,242.27 crore in the year-ago period, according to a regulatory filing.
"Residential demand continues to exhibit sustained momentum. The high demand for luxury homes has been a key trend that is expected to continue," DLF said.
While rising interest rates may pose some challenges, the company said it expects this structural recovery in the residential segment to continue.
DLF is the largest real estate company in terms of market capitalisation.
It has so far developed more than 153 real estate projects, comprising over 330 million square feet of area.
DLF Group has 215 million square feet of development potential across the residential and commercial segments.
The Group has a rent-yielding commercial portfolio of over 40 million square feet.
The bulk of its commercial assets is under the DLF Cyber City Developers Ltd (DCCDL), which is a joint venture firm with Singapore sovereign wealth fund GIC.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
