New Delhi: Realty major DLF's net debt declined 35 percent to Rs 3,416 crore during the first quarter of this fiscal on better sales and fund infusion from promoters.
According to an investor presentation, DLF's net debt has come down to Rs 3,416 crore as on 30 June 2019 from Rs 5,283 crore at the end of the last fiscal.
"Promoter Infusion of Rs 11,250 crore along with QIP proceeds of Rs 3,173 crore has enabled the residential business to achieve very low levels of leverage. Near term target is to make it net debt-free," DLF said.
In March, DLF raised Rs 3,173 crore by selling shares to institutional investors through its qualified institutional placement (QIP) offer. The company had offered 17.3 crore shares to investors at an issue price of Rs 183.40 per share.
In December 2017, the promoters had infused Rs 9,000 crore into the company. Another Rs 2,250 crore was pumped in during the first quarter of this fiscal.
Promoters had committed to infuse Rs 11,250 crore after they sold their entire stake in DLF's rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore.
This big-ticket deal included the sale of 33.34 percent stake in DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL.
On Monday, DLF said in a statement that promoters infused the last tranche of funds amounting to Rs 2,250 crore into the company in the last quarter.
"With a total infusion of Rs 11,250 crore, this is one of the largest infusions by promoters in an Indian company. DLF has now successfully completed the entire process of transformation of its balance sheet," it added.
With a strong balance sheet and completion of all legacy projects, DLF said it would now focus on monetisation of its completed inventory as well as create the future pipeline of projects to fuel growth.
DLF reported over a twofold jump in consolidated net profit at Rs 414.72 crore for the quarter ended June despite a fall in revenue.
Its net profit stood at Rs 172.77 crore in the year-ago period.
Total income declined to Rs 1,540.95 crore during the April-June quarter of this fiscal from Rs 1,657.67 crore in the corresponding period of the previous year.
The company reported an exceptional income of Rs 296.51 crore, which helped in a significant rise in net profit.
The company's net sales bookings stood at Rs 705 crore in the June quarter.
Updated Date: Jul 30, 2019 19:02:31 IST