Get this: DLF's debt touches Rs 20k cr while market cap is Rs 28k cr

New Delhi: Realty giant DLF’s net debt has increased by nearly Rs 400 crore during the third quarter of the current fiscal to Rs 20,336 crore.  According to investors’ presentation, the net debt of DLF, the country’s largest real estate developer, rose to Rs 20,336 crore as of 31 December from Rs 19,943 crore at the end of the July-September quarter. At close, DLF scrip ended the day higher 0.41 percent with market capitalisation of Rs 28,145.54 crore. The current attributable net debt to DevCo (development arm) is Rs 6,350 crore and to RentCo (rental business) is Rs about Rs 14,000 crore, it added. DLF expects that the net debt of DevCo to stay range bound (+/- Rs 1000 crore) in the short term. The attributable net debt to RentCo (rental business) would continue to increase as the rentals and capex of this segment grows. “Target remains to maintain and reduce Devco Debt through improvement in operating/monetisation cash flows and to reduce RentCo debt through capital actions through REITs,” DLF said. DLF said it is ready to launch a large CMBS (Commercial Mortgage Backed Securities) for raising about Rs 3,600 crore in its SEZ business to improve the quality of debt. Last year, it had raised Rs 900 crore through CMBS. Yesterday, DLF reported 9 percent decline in consolidated net profit at Rs 131.79 crore for the quarter ended December due to fall in sales as well as other income. Its net profit stood at Rs 145.29 crore in the year-ago period. Income from operations fell by 5 percent to Rs 1,956.72 crore for the third quarter of this fiscal from Rs 2,058.42 crore in the corresponding period of the previous year. Total income declined by 20 percent to Rs 2,079.82 crore for the quarter ended December from Rs 2,590.2 crore in the year-ago period. Besides lower sales, DLF’s net profit fell because its other income dropped by 77 percent to Rs 123.1 crore during October-December quarter of this fiscal from Rs 531.78 crore in the year-ago period. DLF had said that the company “expects sales volume of residential products to reach normal volumes in the next 12-18 months”. Rental business which is a leading indicator of demand continues to grow at targeted pace. The company had said it remains committed to the medium term goals related to debt reduction and cash-flows as outlined in February 2013, but “the timelines of its implementation has been adversely impacted due to slower GDP growth and uncertainties due to the SEBI restrictions”. DLF has a land bank of 295 million sq ft, of which 50 million sq ft is under development. PTI