DLF unable to utilize its non-core business
Though it is found that the performance of DLF is slightly better than last quarter, they are still struggling to attract the investors.
Most of their projects are still laying unoccupied due to high interest rate for funding. Most of the home buyers are looking for local builders for buying apartments in India. That is impacting the real estate business of all major builders like DLF.
It is recorded that the operating profit of DLF has increased by 20 percent in the last March Quarter, net sale of DLF has dropped by 2.5 percent.
DLF has also failed to reduce its debt burden of Rs 22700 crore. They are also not able to divest its loss-making non-core businesses of hotels and insurance.
In future the group is planning to preserve cash by going slow on capital expenditure and land acquisition. With an improvement in approvals, it intends to focus on fresh launches, especially high margin luxury projects.
DLF, planning to sale its land for Rs 2900 crore
Source: Economic Times
Apartments in India, Debt, DLF, Luxury projects, non-core assets, projects in India, Properties in India
