Top 10 listed real estate firms cut debt by 37% post Covid-19

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India’s top 10 listed property developers have trimmed their consolidated net debt levels by 37% to 27,400 crore between March 2020 and June 2021, according to ICICI Securities.

This was achieved by cutting the cost of debt by 80-160 basis points (bps), lowering corporate overheads by 20-40% from pre-Covid levels, improving operating cash surpluses, undertaking asset sales and equity capital raises either through the qualified institutional placement route or through dilution at the special purpose vehicle (SPV) level, said Adhidev Chattopadhyay, analyst, ICICI Securities.

“While the overall real estate sector in India, especially the unlisted space, continues to grapple with high cost and quantum of debt, listed developers’ balance sheets have become leaner and puts them in a strong position to invest for growth in the medium term and is likely to accelerate the pace of consolidation in the sector,” he said.

Favourable factors such as healthy…

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