DLF,
India’s leading real estate developers, have announced their strategy to reduce their debt by a substantial margin. The company aims to raise Rs. 2700 cr. this financial year by selling non-core assets. This move is part of a larger plan to cut their overall debt of over Rs 16,421 cr. by approximately 33%.
Debt Reduction Plans
DLF’s extensive plan involves reducing their debt by Rs. 5000 cr. Out of this amount, Rs. 2700 cr. will be generated through the sale of non-core assets, with the remaining funds coming from internal accruals. In the previous year, DLF had initially aimed to raise Rs. 5500 cr., but could only manage Rs. 1800 cr. from the sale of non-core assets.
Financial Obligations
This fiscal year, DLF is obligated to repay debts amounting to Rs 2,500-2,700 cr., in addition to an interest payment of Rs. 1800 cr. Officials within the company believe that divesting non-core assets is not merely a means to reduce debt, but also a strategic move to enhance focus on core business operations.
Revenue and Sales Performance
The firm’s overall revenue for the financial year 2009-10 stood at Rs. 7,855 cr., reflecting a 25% decrease compared to the previous fiscal year. Despite this, DLF managed to sell an impressive area of 12.55 million sq ft globally during the last fiscal year.