Omaxe Ltd is planning to cut debt by 25% to Rs 1,250 crore by the end of current financial year from Rs1,552 crore as of March 31. The company is also planning to raise Rs300 crore to be used in new projects. The scheduled debt repayment for the current fiscal stands at Rs. 625 crore. An interest component of additional Rs. 200 crore will also be paid this year. It is also planning to raise Rs. 300 crore this fiscal. So the gross debt by the end of this fiscal can be at Rs. 1,250 crore.
Of this, Rs.210 crore will be deferred land payment while the banking loan will be around Rs. 1,000 crore. Debt retirement of Rs 625 crore this fiscal will be done through the company’s internal accruals. In 2010-11, the company paid off debt worth Rs 580 crore to banks and financial institutions.
In the current financial year Omaxe is planning new launches of 10.5 million square feet, raking in Rs1,700-1,800 crore. The firm will start new launches in the second quarter of the current fiscal and hopes to sell at least 50-60% of it. This year, it is also looking at delivering almost 18 million sq ft. In 2010-11 the company completed 22 million sq ft projects spread across 11 cities.
Omaxe reported a net profit of Rs. 92.7 crore for fiscal 2011, down 17.6% from Rs. 112.5 crore in fiscal 2010. It booked sales of Rs. 1,522 crore in the last fiscal compared with Rs. 1,001 crore for the fiscal 2010, registering a growth of 52%.