DLF expects softer 2HFY17, says HDFC Securities

Bengaluru: DLF expects softer second half of the current financial year due to slower property market and demonetisation.

According to a recent report by HDFC securities, “For 1HFY17 DLF recorded gross presales of Rs 890 crore. Post cancellation and upgradation of net presales stood at Rs 500 crore. The company expects softer 2HFY17E,” said the report.

“We expect delayed deal closure to result in 20-45% cut in our DLF FY17-18E pre-sales estimates. This will delay revenue recognition. We lower our FY18E EPS estimate by 31.5%,” said Parikshit D Kandpal analyst HDFC securities.

Currently DLF is undergoing a major restructuring in the rent Co. business. “The restructuring of the rent Co. will be two stage process,” said Kandpal.

According to a recent report by HDFC securities, for 1HFY17 net debt equity stood at 0.87x and net debt increased Rs 1021 crore q-o-q to Rs 2314 crore. Gross debt is Rs 2683 crore.