New Delhi: Indiabulls Real Estate Ltd (IBREL) has cut its net debt by over Rs 300 crore during the second quarter of this fiscal year and is targeting to further reduce it by Rs 1,850 crore by March 2017.
According to an investors' presentation, net debt of the Mumbai-based developer stood at Rs 5,153 crore as on September 30, 2015 against Rs 5,461 crore at the end of the June quarter of 2015-16 financial year.
"Net debt effectively reduced by Rs 328 crore in the last quarter, taking into account adverse hit of Rs 20 crore due to foreign exchange fluctuation," IBREL said in the presentation.
On debt outlook, IBREL said, "Further net debt reduction of Rs 350 crore planned and expected in second half of current FY and another Rs 1,500 crore reduction in the next FY."
It is targeting a net debt of Rs 4,800 crore as of March, 2016 and Rs 3,300 crore as of March, 2017.
IBREL's total gross debt stood at Rs 5,863 crore, of which off-shore debt is Rs 1,838 crore against 22, Hanover Square, valued at 230 million pounds.
The company also reported new sales at Rs 759 crore during the quarter ended September.
Giving update about its London project, IBREL said the "planning permission for 22, Hanover Square granted by the authorities on 20th Oct 2015".
The company had entered the London market last year with the acquisition of 22, Hanover Square in Mayfair, Central London, a 87,444 sq ft commercial property for Rs 1,630 crore.
The redevelopment scheme comprises of 41 apartments with 80,000 sq ft, 51 hotel rooms with 30,000 sq ft of leisure facilities and 4,500 sq ft retail and restaurant space facing onto Hanover Square.
"International property consultants, CBRE, have pegged the residual market price of the 22, Hanover Square asset at GBP 230 million. Appreciation of 48 per cent on the acquisition investment of GBP 155 million, in one year," IBREL said.
IBREL reported a two-fold increase in consolidated net profit at Rs 75.01 crore for the quarter ended September 30 against Rs 37.33 crore in the year-ago period.
Total income from operations declined 18.67 per cent to Rs 605.73 crore during July-September quarter compared with Rs 744.79 crore in the corresponding period of the previous year.
IBREL is currently developing 11 projects in India with total saleable area of 30.4 million sq ft. It has presence in Mumbai, NCR and Chennai.