The real estate developer, DLF Ltd needs to repay Rs 10,400 crore of long-term debt in 2013-14 and 2014-15, says a research report of Edelweiss Securities, on the basis of the disclosures made by the company in its annual report for 2011-12. The annual report gives a long list of repayment schedules, including both monthly instalment-based repayments as well as bullet repayments.

The repayment would be divided fairly equally between the two years, and so, DLF would need to pay back Rs 5,200 crore in each of the two years.

Besides these, DLF also has short-term borrowings amounting to Rs 3,400 crore, which we would expect to be rolled over, says Edelweiss. It expects DLF to repay Rs 3,000 crore out of asset sales, including the sale of NTC Mill land, four hotel plots and the wind power business.

In all, DLF has long-term debt of Rs 15,500 crore, says the report, quoting the company’s annual report.

To raise Rs 6,000 crore

DLF has said in the annual report that it would continue to focus on divestment of non-core assets with an objective of reducing its debt.

In 2011-12, the company “unlocked” through divestment of non-core assets and raised Rs 4,841 crore.

“The company has set a divestment target of Rs 5,000 crore to Rs 6,000 crore for 2012-13,” the annual report says.

In 2011-12, DLF reported revenues of Rs 3,491 crore and net profit of Rs 1,041 crore. In the first quarter of the current year, the company reported revenues of Rs 792 crore and net profit of Rs 367 crore.

On the BSE today, the DLF share, of a face value of Rs 2, closed at Rs 207.65.

(This article was published on August 24, 2012)
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