DLF plans to reduce its debt to Rs 12,000-14,000 crore by FY17
On the sidelines of a realty industry function held recently in Mumbai, real estate bigwig DLF said that it has efforts underway to ensure that its debt is reduced to Rs 12,000-14,000 crore by FY17. The company had a debt of Rs 19,000 crore in FY14.
For bringing down its debt by FY17, the realty major will largely depend on asset monetisation as well as increased flow of cash from property sales.
With regard to DLF’s plans, the company’s Finance and Investor Relations’ VP Rajiv Goel told reporters at the industry event that DLF will consider the sale of some of its non-core assets. However, the company will apparently not be as aggressive in implementing the move as it has been in the past.
As a result of its previous sales of non-core assets, DLF has been able to garner an amount of 5,930 crore by disposing off its wind energy business, insurance business and hospitality venture Aman Resorts. In addition, the company has also been refunded by the government for its Dwarka project and the institutional placement programmes.
About DLF’s plans to pare its debt by FY17, Goel said: “We will also use the cash flows from sales to pare debt. As the market sentiment has improved, we expect it to translate into sales in the next two-three months. We will also make some strategic divestments.”
Source – The Economic Times
12, 12000-14000 crore debt by FY17, Debt, DLF, DLF plans, Finance and Investor Relations, FY17
