DLF cuts net debt 54% in five quarters to Rs 2,2,59 crore in Q1, FY23

Real estate major DLF Ltd. managed to cut its net debt further in the April-June quarter. The Delhi-based realtor reduced its net debt to Rs 2,259 crore at the end of June this year - cutting another Rs 421 crore since the end of the last quarter in March.

Over the last five quarters - since March, 2021 - DLF’s net debt has come down by 53.8 per cent - from Rs 4,885 crore. According to the company, steady flow of surplus cash from operations helped it manage its debts better. In FY2019 and FY2020, its net debt had inched close to its operating revenue - putting strain on its finances.

“We continue to remain committed towards surplus cash generation from our operations and it continues to be a key focus area. We generated surplus cash of Rs 421 crore during the quarter which led to further deleveraging and consequently our Net Debt at the end of quarter stood at Rs 2,259 crore, one of the lowest levels,” DLF management said in a statement.

During the April-June quarter, superior demand in the super luxury category of residential homes boosted DLF’s performance. According to it, from The Camellias - a super luxury project at Gurugram - attracted buyers and delivered Rs 352 crore sales bookings. While, new products contributed Rs 1,532 crore towards its topline. Overall, the residential business segment clocked new sales bookings jumped 101 per cent over the corresponding quarter last year, to Rs 2,040 crore.

In spite of rising interest rates for home loans, DLF expects demand to remain steady. “While rising interest rates may pose some challenges, we expect this structural recovery in the residential segment to continue. We continue to bring newer offerings across multiple segments and geographies,”, it said.