NEW DELHI: Realty giant DLF today said it is targeting Rs 6,500 crore of sales in the housing segment this fiscal, up by 23 per cent from FY 2012, and expects to sell three big-ticket non-core assets in the next few months.
In an analyst presentation, DLF, the country’s largest realty firm, said that it expects to raise up to Rs 4,000 crore from sale of non-core assets in the next six months. It is looking to sell its luxury hotel business Amanresorts, wind energy and a prime land in Mumbai.
“We expect to sell 12 million sq ft for Rs 6,500 crore in 2012-13 fiscal as against about Rs 5,200 crore in the last fiscal,” DLF Group Chief Financial Officer Ashok Tyagi said.
Of the expected sales bookings, the company is targeting Rs 1,500 crore from a luxury project ‘Magnolia’ at Gurgaon that would be launched in the second half of this fiscal.
On non-core assets divestment, DLF Executive Director (Finance) Saurav Chawla said: “We are close to the closure of these non-core assets sale. In next few months, we will be able to announce it”.
The company expects to sign definitive agreement with potential buyers in the first half of this fiscal, Chawla said, adding that funds might be received in the second half.
DLF has raised about Rs 1,774 crore in last fiscal through divestments of non-core assets, including plots and IT parks. The divestments proceeds has reached Rs 4,844 crore till date.
“Potential value for further divestments in the next 6 months stands at Rs 3,000-4,000 crore,” DLF said in a presentation.
The total target of divestment of non-core assets of Rs 10,000 crore would be achieved in the medium term, it added.
According to the presentation, DLF has been able to reduce its whopping debt by only Rs 33 crore in the fourth quarter of last fiscal to Rs 22,725 crore.
It plans to reduce debt through “strengthening of operational cash flows, enhance momentum on non-core divestments along with a moderation in land aggregation and capex”.
On debt, Tyagi said borrowings to the tune of Rs 3,900 crore is due this fiscal and clarified that the bulk of funds raised from non-core assets sale would be used to retire debt.
The CFO also divulged that about Rs 1,800 crore of debts are related to Amanresorts and wind energy businesses.
As part of business strategy in FY 2013, DLF wants to conserve cash with moderate capex and land acquisition and protect margins through ‘cost escalation’ clauses.