Listed Developers' Net Debt Halves Since 2019

10 Oct 2024 , 02:37 PM

Listed developers in the country have reduced their net debt by half, to Rs 20,808 crore by Q1 FY 2025, down from over Rs 44,817 crore in Q4 FY 2019, when their overall debt was at its highest.

According to Anarock, with residential sales reaching a new high in the top seven cities over the last year, buyer demand is disproportionately skewed towards branded developers.

The top eight listed companies – Sobha Ltd., Puravankara Ltd., Prestige Estates, Kolte Patil, Mahindra Lifespace Developers Ltd., Godrej Properties Ltd., DLF Limited, and Lodha Developers (Macrotech) – typically disclose their cost of debt in investor presentations.

According to Anarock’s study, the drop in net debt is accompanied by a considerable growth in collective booking values, from Rs 27,144 crore in FY2019 to Rs 90,573 crore by FY2024, a 234% increase.

In Q1 FY2025 alone, the booking value of these eight listed companies is Rs 26,832 crore.

“The top developers that will have a big debt reduction between Q4 FY 2019 and Q1 FY 2025 are DLF Ltd. (165+% drop by receiving surplus cash of Rs 2,896 crore) and Kolte Patil (107% reduction by getting surplus cash of Rs 37 crore). Lodha lowered its net debt by 83% between Q4 FY2019 and Q1 FY25,” stated Prashant Thakur, regional director and head of research at Anarock group, who talked to ET.

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