DLF cuts net debt by 73 percent in FY23

DLF, a prominent real estate company, decreased its net debt to Rs 721 crore during the previous fiscal year by 73 percent due to increased sales and a robust demand for housing. In the years 2022-23, DLF CyberCity Developers Ltd. (DCCDL), a joint venture company that owns office and retail properties with rental income, reduced its net debt from Rs 19,063 crore in the previous year to Rs 18,772 crore.

Primarily engaged in housing development, DLF, the parent company, still retains a few commercial holdings. The DLF and Singapore sovereign wealth fund GIC have joint ownership over DCCDL, where the business of commercial renting is conducted. DLF owns 67 percent of the joint venture firm, while GIC owns the remaining part. DLF's net debt has reduced significantly from Rs 2,680 crore in the 2021-22 financial year to Rs 721 crore as of March 31, 2023, as stated in an investor presentation. The company's net debt level has reached an all-time low. DLF aims to reach net debt-zero status for its development business by fiscal year 2024.

DLF is set to unveil developments valued at Rs 19,710 crore during this fiscal year. It expects to register sales of approximately Rs 12,000 crore this fiscal year due to robust housing demand. Its sales bookings more than doubled to a record Rs 15,048 crore last fiscal, up from Rs 7,273 crore the previous year.

With a boost from its excellent sales performance in the previous fiscal year, DLF has established a bold plan to debut 11.2 million square feet of property in 2023-24, which has a predicted sales revenue potential of Rs 19,710 crore. Most of the projects scheduled for this financial year will be concentrated in the residential sector, specifically in Delhi-NCR and Chennai.

The company introduced a total of 10 million square feet valued at Rs 14,600 crore during the previous fiscal year. DLF reported a notable rise of 40 percent in their merged net earnings for Q1, which totalled Rs 569.60 crore compared to Rs 405.54 crore in Q4 of 2021-22. The revenue for the current fiscal year's March quarter decreased to Rs 1,575 crore from the previous year's corresponding period of Rs 1,653 crore. In the previous financial year, DLF registered a notable 36 percent surge in net profit, reaching Rs 2,033.95 crore compared to their previous fiscal year's Rs 1,500 crore.

The overall revenue decreased from Rs 6,137.85 crore in the previous year to Rs 6,012.14 crore in 2022-23. DLF, the real estate giant of India, holds the top position in the market based on its market capitalization. It has successfully completed over 153 real estate projects and built an area of over 330 million square feet.

The annuity portfolio of the DLF Group encompasses an area exceeding 40 million square feet. The residential and commercial segments hold a development potential of 215 million square feet for the company.

Synopsis: DLF, India's top real estate company, has impressively slashed its net debt by 73 percent, bringing it down to Rs 721 crore in the fiscal year 2022-23. The net debt of Rs 18,772 crore for DLF Cyber City Developers, a joint venture firm, declined by 1 percent. DLF's debt load has been reduced following a boost in sales, driven by significant demand for housing. DLF aims to reach net debt-zero status for its development business by fiscal year 2024. DLF is set to unveil developments valued at Rs 19,710 crore during this fiscal year. It expects to register sales of approximately Rs 12,000 crore this fiscal year due to robust housing demand.

Next (Thane housing project receives Rs 158 crore from SWAMIH Fund)

DLF cuts net debt by 73 percent in FY23

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