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Thursday, May 31, 2012

DLF debt still at a whopping Rs 22,725 cr

India’s largest realty firm DLF has reduced net debt by only Rs 33 crore in the fourth quarter of last fiscal, 2011-12, to a whopping Rs 22,725 crore and aims to cut it further from expected divestment of non-core assets up to Rs 4,000 crore in next six months.

According to a presentation by an analyst, DLF’s net debt stood at Rs 22,725 crore as on March 31, 2012 from Rs 22,758 crore at the end of third quarter of last fiscal.

It plans to reduce debt through “strengthen operational cash flows, enhance momentum on non-core divestments along with a moderation in land aggregation and capex”.

On non-core asset divestment, DLF said: “Potential value for further divestments in next six months stands at Rs 3,000-4,000 crore”.

DLF has raised about Rs 1,774 crore in last fiscal through divestments of non-core assets, including plots and IT parks. The divestments proceeds has reached Rs 4,844 crore till date.

The overall target of divestment of non-core assets of Rs 10,000 crore would be achieved in the medium term, it added.

“The company has also made significant progress in divestment initiative of non-core assets and expects closure in the near term,” DLF said, adding the company is looking to sell its hotel business Amanresorts, a prime plot in Mumbai and wind energy business.

As part of business strategy for this fiscal, DLF wants to conserve cash with moderate capex and land acquisition and protect margins through ‘cost escalation’ clauses.

It would “focus on high margin projects (Luxury/Plotted); moderate volumes in mid-income segment” and also concentrate on fresh launches with the improvement in the approval cycle.

Yesterday, DLF had reported a 39 per cent fall in its consolidated net profit at Rs 211.70 crore for the quarter ended March 31, 2012 on account of higher interest outgo. It had posted a profit of Rs 344.54 crore a year-ago period.

The revenue fell by four per cent to Rs 2,747 crore in the Q4 of 2011-12 fiscal from Rs 2,870 crore in the corresponding period of previous fiscal.

For the entire 2011-12 fiscal, the net profit fell by 27 per cent to Rs 1,200.82 crore from Rs 1,639.61 crore in the previous fiscal. The revenue rose marginally at Rs 10,224 crore in 2011-12 from Rs 10,144 crore in 2010-11 fiscal.

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