DLF will not launch new projects in FY17

DLF, the country's largest listed real estate developer, will not go for any new launches except for the projects which are part of its joint venture with Singapore's sovereign wealth fund GIC, said a senior executive of the company.

"We have seen some green shoots in Gurgaon residential sales. But we do not anticipate new launches in the current financial year but focus on selling properties in already launched projects and look at launching projects under JV with GIC," said Ashok Tyagi, chief financial officer at DLF in a conference call with analysts.

Tyagi said that the company has unsold inventory in different geographies and projects such as Ultima and DLF would focus on selling these projects.

He said the company would look at pre sales of Rs 3,000 crore to Rs 3,500 crore during FY 2017 and net pre leasing of about 1-1.5 million sq ft.

The developer's net debt has gone up by Rs 791 crore during the Q4 of FY 2016 at Rs 22,202 crore, the company said in its analyst presentation. The net debt included Rs 430 crore Interim Dividend it paid for FY 16.

The company's cost of debt has come down from 12.5 per cent as on Mar 31, 2015 to 11.54 per cent as on March 31, 2016, meanwhile, debt attributable to rental business was Rs 18000 crore and residential business was Rs 4500 crore.

"We expect this ratio will change from 14:8 by Fy 2017 to 17:5 a year from now," Tyagi said.

The company said it has floated information on the stake sale by promoters of its rental arm DLF Cyber City Developers to investors in April this year and expected to get expression of interest in another seven to 10 days. DLF promoters are selling 40 per cent in the rental arm for around Rs 12,000 crore.

The company plans to conclude the deal in the current financial year.