New Delhi: According to a report by ICICI Securities, it suggests that the net debt levels of listed real estate developers have declined by 37 per cent since the first wave of Covid-19. The report said reduction in cost of credit by 80-160 basis points, 20-40 per cent reduction in corporate overheads from pre-Covid levels, operating cash surpluses, debt levels through a combination of asset sales decline has been achieved. The equity capital is raised either through the QIP route or through dilution at the SPV level. “On an aggregate basis, developers listed in our coverage universe (ex-REIT) have been able to bring down their consolidated net debt level by 37 per cent to Rs 274 billion (ex-DCCDL) between Q4FY20-Q1FY22 (March 20 to June 21) . ),” it said.
While the overall real estate sector in India, especially the unlisted space, is grappling with high costs and debt volumes, the balance sheets of listed developers have become lean which puts them in a strong position to invest for growth in the medium term. and is likely to accelerate the pace of consolidation in this area. The report said developers have used a mix of organic and inorganic routes to reduce debt.