DLF plans to refinance ₹1,300 crore of debt at lower cost1 min read . Updated: 05 Jun 2020, 09:52 AM IST
- DLF has ₹5,267 crore of net debt. DLF Cyber City Developers Ltd, the rental portfolio comprising 30 million sq ft of operational office and retail assets, has net debt of ₹18,007 crore
BENGALURU: DLF Ltd, India’s largest real estate developer, plans to refinance around ₹1,300 crore of debt, up for repayment this year, at reduced interest cost, the company said at an analyst presentation late on Thursday.
“...DLF Ltd’s (ex-DCCDL) debt repayments for current fiscal are ₹1,300 crore. While these can easily be serviced from the current cash levels, we are working towards refinancing this debt to maintain strong liquidity position throughout the year. New funding being done at reduced interest costs thereby reducing outflow," the company said.
DLF, the development arm of the group, has ₹5,267 crore of net debt. DLF Cyber City Developers Ltd (DCCDL), the rental portfolio comprising 30 million sq ft of operational office and retail assets, has net debt of ₹18,007 crore.
While DLF has cash reserve of around ₹2,500 crore, DCCDL’s cash reserve is at ₹1,300 crore.
In December 2017, in a bid to monetise its commercial assets, DLF promoters sold their 40% stake in DCCDL to Singapore’s GIC for nearly ₹12,000 crore. The deal included sale of 33.34% in DCCDL to GIC for about ₹9,000 crore and buyback of remaining shares of about ₹3,000 crore by DCCDL.
DLF said it is evaluating and bringing more focus on efficient cost and organisation structures and tight control on cash flows.
“...We have conducted extensive internal exercises, thereby targeting a substantial reduction of overheads by eliminating non-essential costs. DLF is poised to have a much leaner and far more efficient organizational framework as a result of this activity," the company said in the presentation.
On Thursday, DLF reported a net loss of ₹1,860 crore for the quarter ended March, after a one-time, exceptional tax provision of ₹272 crore and deferred tax asset reversal of ₹1,916 crore on adoption of lower tax rate. The company had reported a net profit of ₹435 crore in the year-ago period.
Its total income fell 29% year-on-year to ₹1,873.80 crore during the quarter.
DLF also appointed vice-chairman Rajiv Singh as the new chairman, replacing K.P Singh. The latter will continue in a non-executive role as chairman emeritus.