DLF to launch 16 m sqft residential space this fiscal Our Bureau NEW DELHI

DLF, India's largest property firm, plans to launch 16 million sqft of residential space in the current fiscal, even as the company continues to have a cautious outlook. DLF has been able to reduce its debt by over Rs 2,000 crore and has received another Rs 2,000 crore from group company DAL in June quarter giving indication that cash situation at the company may be fast improving.
"We are being a bit more cautious than rest of our colleagues...We will launch not just for selling but for adding value and making reasonable profit," DLF vice-chairman Rajiv Singh told analysts in a post-earnings conference call, adding that he didn't think the sector was "completely out of the woods".
Mr. Singh said he saw "reasonable revival in demand" not just for low-cost or mid-income, but also for high-end homes. The company would launch 8 million sqft each in mid-income and luxury housing segments across cities this fiscal.
On the possibility of a price hike, Mr. Singh said the current industry conditions didn't call for a price hike. A price hike could reinvite speculative element in the sector, he said.
The company has reduced its net debt in the June quarter from Rs 14,000 crore to Rs 11,686 crore. It plans to bring down its net debt to Rs 6,000 crore by the end of this fiscal.
As part of its deliberating exercise, the company has received Rs 500 crore through sale of assets and is close to concluding deals that would generate another Rs 3,000 crore in the second and third quarter of this fiscal. In all, the realty firm expects to raise Rs 5,500 crore, which would be used to repay debt and bring down company's debt-equity ratio from current 0.5 to 0.3 by March-end. DLF received Rs 2,000 crore from DAL, a privately-held group company, in the April-June quarter bringing down its receivable from DAL to Rs 2,600 crore. Both DLF and DAL are promoted by Rajiv Singh and family and the two companies have been mulling an option for the listed firm to take over the privately-held entity. The proposal of DLF taking over DAL is still under deliberation, Mr Singh said.
"They (DE Shaw) are showing some interest in remaining committed...We will be able to resolve this soon," Mr Singh said on DE Shaw's proposed exit from DAL. DE Shaw, which had invested $400 million in DAL two years ago, had expressed interest to exit DAL sometime back.
DLF on Thursday announced a 79% decline in profit to Rs 396 crore and a 57% fall in sales to Rs 1,650 crore for the June quarter. DLF feels demand for offices and malls will take a little longer to pick up. Mr Singh said local enquiries have increased for commercial space, but it may take six months for a significant number of these to be converted into bookings.

Courtesy: ET 1st Aug 2009

http://zameen-zaidad.com