dlf: DLF net debt drops by 45% to Rs 2,680 cr in FY22; aims for further medium-term debt reduction

Realty Major DLF’s net debt has fallen by 45% in the last financial year to Rs 2,680 crore as better sales of residential properties have improved its cash flow.

According to an investor presentation,

Net debt of stood at Rs 2,680 crore as of March 31, 2022. Its net debt stood at Rs 4,885 crore at the end of the 2020-21 financial year.

“Reduced net debt by Rs 2,205 crore in FY22. Steady reduction in operating surplus,” the presentation reads.



DLF said it is committed to continued debt reduction over the medium term.

Cash flow from the sale of completed properties and receivables from the sale of projects in progress would be sufficient to discharge all current liabilities.

The company said launching new projects would help generate healthy cash flow.

Over the past financial year, DLF’s sales bookings doubled to Rs 7,273 crore, driven by better demand for its properties, especially luxury homes.

Its sales bookings amounted to Rs 3,084 crore in 2020-21.

DLF called it their best performance in the past 10 years.

The company said it will continue to focus on tapping into new geographies by bringing in new products.

It would launch new projects at multiple price points across all segments to meet growing demand.

According to the presentation, DLF would focus on increasing market share in core geographies and monetizing land banks.

“High-margin products coupled with price increases calibrated to offset inflationary pressure; steady value improvement across the product portfolio,” the presentation reads.

Recently, DLF reported a 16% drop in its consolidated net profit to Rs 405.33 crore for the quarter ended March due to lower revenue.

Its net profit stood at Rs 480.94 crore in the prior year period.

Total revenue fell to Rs 1,652.13 crore in the March quarter from Rs 1,906.59 crore in the corresponding period of the previous year.

Net profit rose to Rs 1,500.86 crore in the last financial year from Rs 1,093.61 crore in the 2020-21 financial year. Total income rose to Rs 6,137.85 crore in 2021-22 from Rs 5,944.89 crore in the previous year.

DLF is India’s largest property developer by market capitalization. It has developed more than 153 real estate projects and developed an area of ​​more than 330 million square feet.

Ann J. Cox