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DLF’s big-ticket asset sale to garner Rs 5,000 cr

Bindu D. Menon
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A view of the towers in the final stages of completion at DLF's Garden city. (file photo)
A view of the towers in the final stages of completion at DLF's Garden city. (file photo)

DLF Ltd has said its debt reduction will be largely based on three to four big-ticket divestments. The company said it hopes to mop up Rs 5,000 crore through the sale of its non-core assets by the end of this fiscal.

India’s largest real estate player, however, maintained that demand for real estate is likely to remain subdued due to weak consumer demand, high interest rates and margins will remain stretched out.

During an analysts presentation, the company said, “Investor sentiment is low and inflation is sticky. We don’t see much relief in next 12-15 months. Our performance in the quarter is in line with the macro-economic conditions,” Saurabh Chawla, Executive Director, Finance, said.

DLF had reported 18 per cent fall in its consolidated net profit for the quarter ended June 30 at Rs 292.79 crore, compared with Rs 358.36 crore a year ago.

Speaking on its debt reduction, Ashok Tyagi, Group CFO, said: “We are pre-closing various deals and are optimistic that we will able to close the deals by mid-year”.

DLF had overall disinvestment target of non-core assets of Rs 10,000 crore. The company has so far raised Rs 5,213 crore from sale of various non-core assets including hotel plots and IT SEZs/parks as it wants to focus on the real-estate business. In its presentation to analysts, DLF said its net debt stands at a whopping Rs 22,680 crore as on June 30 against Rs 22,725 crore at the end of last fiscal. The company said it had raised Rs 369 crore during the April-June quarter.

Meanwhile, the company said the commercial IT segment is likely to be adversely impacted by the global economic and political conditions. DLF said in the first quarter ended June 30, it has received a booking of 1.34 million square feet of gross sales booked as against 2.3 msf in Q1.

The rentals are also marginally down by 0.29 msf in first quarter 2012 compared with 0.73 msf in the same period a year ago. The company said it has received Rs 400 crore as rental income from offices and retail.

bindu.menon@thehindu.co.in

(This article was published on August 7, 2012)
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