Parsvnath Developers, New Delhi-based real estate company, is planning to generate revenues worth Rs13,000 crore in the next two years. The company, which currently has debt of Rs1,100 crore, also plans to become completely debt-free by March 2013. The revenues were Rs455 crore during first six months of the current fiscal.
“About 80 million square feet (msf) is on fast-track execution, which we plan to complete by March 2013. Out of this, 40 msf is pre-sold and will generate Rs4,000 crore for us. The remaining 40 msf will generate another Rs9,000 crore. So as of now, we are focusing to complete the 80 msf and generate large cash for the company. The moment we achieve this, our balance-sheet will be completely debt-free with large cash reserves,” said Pradeep Jain, chairman, Parsvnath. The company owns a total of 195 msf. The properties are mainly located in Delhi and the National Capital Region.
On debt reduction plans, Jain said, “Our debt position is very comfortable. From a peak of Rs2,200 crore, we are almost half at around Rs1,100 crore as of now. By the end of this calendar year, we hope to bring the debt at around Rs500-600 crore.” The current debt-equity ratio of the company stands at 0.43%.
“Debt servicing will be done completely through internal generations and no fundraising at the parent company level is on the cards as of now. Also, funds already raised on the special purpose vehicle level and through the forthcoming deals will not be utilised for the repayment of the debt. We may monetise non-core assets if required,” The company may monetise its properties in Cochin, Mysore, Chennai, Palghat, Nanded and Coimbatore if required depending on the valuations. There are no concrete plans as of now. The company last week also entered into a project level private equity deal worth Rs 100 crore with Sun Apollo. It has picked up a 49.9% stake in the Parsvnath Buildwell Pvt Ltd, the SPV developing Exotica in Ghaziabad spread over 31 acres. The deal proceeds will be used for project implementation as well as marketing.
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