In an investor presentation, DLF said the company was “committed to continued debt reduction over the medium term.”
He asserted that the completed inventory and customer receivables from units sold would be sufficient to discharge all current liabilities.
“New products to generate healthy cash flow; consistent excess cash generation to strengthen cash position,” the presentation reads.
Gross debt also fell to Rs 3,900 crore as of June 30 from Rs 4,755 crore at the end of last fiscal year.
Operationally, DLF’s sales bookings doubled to Rs 2,040 crore in the first quarter of this fiscal year from Rs 1,014 crore a year ago.
It is targeting a 10% growth in its sales bookings to around Rs 8,000 crore this financial year.
DLF sales bookings increased to Rs 7,273 crore in 2021-22 from Rs 3,084 crore in the previous financial year.
Demand for housing is gradually consolidating towards large brand developers who have a good track record of delivering projects.
On Saturday, DLF Group Chief Executive Aakash Ohri told investors on an analyst call that the company’s sales bookings rose sharply in the June quarter and it expects the momentum continues.
When asked if the company would revise its sales booking forecast upwards by Rs 8,000 crore given good growth in the first quarter, which is not usually the strongest, Ohri had said: “ We will not revise anything at this time. We will continue to stick to this.”
There are headwinds like rising interest rates and hence the company would not get carried away and keep the sales guidance as it is, he added.
On Friday, DLF announced a 39% increase in its consolidated net profit to Rs 469.57 crore in the quarter ended June on the back of better sales.
Its net profit stood at Rs 337 crore during the period a year ago.
Its total income rose to Rs 1,516.28 crore in the first quarter of this financial year from Rs 1,242.27 crore a year ago, according to a regulatory filing.
“Residential demand continues to show sustained momentum. Strong 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 by market capitalization.
It has so far developed more than 153 real estate projects, comprising more than 330 million square feet of area.
DLF Group has development potential of 215 million square feet in the residential and commercial segments.
The Group has a commercial rental portfolio of more than 40 million square feet.
Most of its business assets are under DLF Cyber City
(DCCDL), which is a joint venture with the Singapore sovereign wealth fund. PTI MJH BAL BAL