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Real estate player DLF Ltd has said it will achieve its net debt reduction target despite the Amanresorts deal not going through.
Last year, the company had sold Amanresorts to Adrian Zecha, the hospitality chain’s founder, for Rs 1,600 crore. However, Zecha could not arrange the funds to close the deal.
DLF has announced that it is currently in negotiations with more than five bidders to sell the property.
“We will achieve the debt reduction target of Rs 17,500 crore by this year end. We hope to get a higher valuation in the Aman deal,” said Saurabh Chawla, Executive Director at DLF, during an investor call.
The company said it may also look at introducing a commercial mortgagebacked security in India.
Profit down 38%
“We are almost ready to hit the market. We are waiting for the bond market to settle before entering with a product,” said Chawla.
“We are working on two assets and hope to raise Rs 900 crore from it. Many buyers for this product are life insurance firms who are interested in investing in a coupon.”
DLF reported a 38 per cent fall in its consolidated net profit for the quarter ended June, to at Rs 181.19 crore, from Rs 292.79 crore in the same period a year ago.
Income from operations increased by five per cent to Rs 2,314.08 crore during the quarter from Rs 2,197.71 crore in the corresponding period last fiscal.
NET DEBT DECREASES
Chawla said DLF reduced net debt by over six per cent during the quarter to Rs 20,369 crore on improved sales and funds raised via share sales to institutional investors.
The company said it is also looking to mop up Rs 2,870 crore this fiscal year from disinvestment of land and non-core businesses, such as wind energy and insurance.
Appointments
Meanwhile, the company said its board had re-appointed K.P. Singh as Chairman for five years with effect from October 1, 2013, and co-opted Rajiv Krishan Luthra and Pramod Bhasin as non-executive independent directors.
The company said it had achieved sales bookings of Rs 2,430 crore compared to Rs 3,800 crore for all of financial year 2013.
DLF added that it is also in the process of selling a land tract in Hyderabad for Rs 500 crore.
bindu.menon@thehindu.co.in
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