Debt Reduction Plans
DLF, the largest real estate firm, is embarking on a strategic plan to offload select IT parks and its hotel business, aiming to garner approximately ₹7,000 crore over the next two years. This move is designed to significantly reduce its burgeoning gross debt.
Financial Overview
- Tax Dues: The company's tax dues reached an all-time high in the financial year 2011, with an additional tax demand of ₹546.85 crore from the IT department in the last quarter of 2010-11.
- Net Profit: In the subsequent quarter of the previous year, DLF reported a net profit of ₹426.38 crore.
Non-Core Asset Sales
Over the past 1½ years, DLF has successfully divested some non-core assets, including:
- Hotel sites in Delhi and Hyderabad
- Non-contiguous land parcels
These sales have fetched the company around ₹3,000 crore. Key Assets to Remain: DLF has clarified its intention to retain buildings and other developed properties, while considering the sale of low-return assets like IT Parks.
Revised Financial Objectives
- Initial Plan: ₹4,500 crore from non-core asset sales
- Revised Plan: ₹10,000 crore over the next 2-3 years
- Progress: With ₹3,000 crore already secured from previous sales, the company is now identifying properties to achieve the remaining ₹7,000 crore, aiming to become debt-free in the mid-term.