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Last Updated : Nov 05, 2018 01:32 PM IST | Source: PTI

DLF's FY19 sales bookings may cross Rs 2,250-cr projection

The sales bookings is likely to jump over two-fold this fiscal as the company had sold flats worth Rs 1,000 crore only, during 2017-18, due to a six-month suspension of sales to comply with the new real estate law.

 
 
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Realty major DLF's sales bookings in 2018-19 may be higher than the Rs 2,250 crore guidance provided by the company at the beginning of this fiscal, driven by better demand for its completed inventories.

The sales bookings is likely to jump over two-fold this fiscal as the company had sold flats worth Rs 1,000 crore only, during 2017-18, due to a six-month suspension of sales to comply with the new real estate law.

Real Estate (Regulation and Development) Act, 2016 (RERA) came into effect from May 2017.

According to an investor presentation, the company achieved gross sales bookings of Rs 780 crore and net sales bookings of Rs 625 crore during the second quarter of this fiscal.

"At the current sales momentum, it looks like the new sales bookings may cross our sales guidance of Rs 2,000-2,250 crore for this fiscal," DLF's group CFO Saurabh Chawla told analysts in a conference call last week.

During the first half of this fiscal, the company has already achieved gross sales bookings of Rs 1,450 crore and net sales bookings of Rs 1,225 crore.

DLF also sees good opportunity for itself from the current liquidity crisis in the NBFC sector, which it expects would lead to lower supply.

"DLF is well positioned to grab this opportunity as it has completed units to offer in the market," the company said in an investors presentation.

DLF said, it was focusing on monetising its finished inventory of about Rs 12,900 crore, which has reduced in last few quarters from about Rs 15,000 crore.

The sales of completed housing units would result in surplus cash flows that it plans to utilise in debt reduction, reinvestment in projects and build cash reserves.

DLF said it wants to "maintain high amount of cash on the books to mitigate any unforeseen circumstances/events".

The company targets to make its development (residential) business free from debt, which stood at around Rs 7,000 crore at the end of September quarter.

Apart from internal accruals, DLF said promoter infusion of Rs 2,250 crore against issue of warrants and proposed sales of shares through QIP (qualified institutional placement) would help the company in bringing down its net debt.

DLF is waiting for capital market to stabilise, to launch its QIP through which it is planning to raise about Rs 4,000 crore.

"We are waiting for a calmer market to launch QIP," Chawla told analysts. It plans to issue up to 17.3 crore shares to qualified institutional investors to raise funds.

On Thursday, DLF reported an over 26-fold jump in consolidated net profit at Rs 374 crore for the September quarter. Total income rose to Rs 2,304 crore in the July-September quarter of this fiscal from Rs 1,751 crore in the corresponding period of the previous year.
First Published on Nov 5, 2018 01:25 pm
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