DLF's sales booking down 63 pc at Rs 1,160 cr in FY17

Realty major DLF's net sales bookings fell sharply by 63 per cent to Rs 1,160 crore during the last fiscal due to demand slowdown in the property market.

It did not provide any guidance to the market for the 2017-18 fiscal due to uncertainties in the market following implementation of the Real Estate (Regulation and Development) Act, 2016 from May and GST law from July this year.

DLF expects normalcy in the property market, which is facing a multi-year demand slowdown, to return in the next 4-6 quarters.

"Gross sales booking of Rs 2,100 crore; Cancellation/ upgradation Rs 940 crore resulting in net sales booking of Rs 1,160 crore booked in FY17. This is in comparison to net sales booking of Rs 3,150 crore in FY16," the country's largest realty firm said in a presentation.

The company completed 14.5 million sq ft of area in the last fiscal.

DLF said the impact of demonetisation on the consumer sentiments has "abated" and hoped that sales in primary market will rise with increase in number of transaction in secondary or resale market.

"The consensus expectation is that normalcy for the sector shall take 4 to 6 quarters," the company said.

Listing out the challenges for the sector, DLF said the industry would continue to face significant over-supply and poor demand in the short run.

"RERA implementation will have fundamentally far reaching impact over the long term, but remains disruptive in short term. GST introduction would have positive impact in long term, but implementation shall have its own challenges," the presentation said.

DLF said it continues to focus on completion of projects and to create finished inventory for sale in foreseeable future when demand returns.

"Low sales coupled with outflow due to project completion will cause stress in the operating cashflow.

"Postponement of sales and collections will lead to operating shortfall for next 2 to 3 quarters. Continued Capex and execution as forecasted. This shall result in temporary spike in net debt levels for which financing is already in place," DLF said.

The net debt has increased by nearly Rs 700 crore in January-March quarter of the last fiscal at Rs 25,096 crore.

Last week, DLF reported a Rs 135.63-crore consolidated net profit for the March quarter of the last fiscal as against a net loss of Rs 180.54 crore in the same period of 2015-16.

Total income fell by 8 per cent to Rs 2,511.37 crore in the fourth quarter of the last fiscal from Rs 2,732.76 crore in the year-ago period.

For the 2016-17 fiscal, the net profit more than doubled to Rs 694.17 crore from Rs 331.95 crore in the previous year.

Total income fell by 16 per cent to Rs 8,940.51 crore in 2016 -17 from Rs 10,597.04 crore in the previous year.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)