DLF plans to cut debt by Rs1,000 crore a month

New Delhi, July 15: DLF Ltd, the country’s largest real estate developer, said it is looking to reduce its debt by Rs 600-1,000 crore each month in this fiscal by utilising funds raised by selling non-core assets, land plots, and the cash flow from operations.

It also added that it has replaced its entire short-term loans with long-term debt, with lower interest rates and repayment liabilities in the next 5-7 years.

The company had net debt of Rs 13,958 crore at the start of 2009-10, of which Rs 3,591 crore was to be cleared this fiscal.

However, the developer has been able to reduce the debt to Rs 12,000 crore, according to its latest statement.

“We are looking to reduce our debt by Rs 600-1,000 crore every month, which is our target. Our plans to sell non-core assets are on track, which will help us reduce the debt from the balance sheet by 50% by end of this fiscal,” Rajeev Talwar, DLF’s group executive director, told DNA on the sidelines of an event organised by CII here.

The New Delhi-based developer is also expecting to raise Rs 1,900 crore by December by selling hotel and other land plots.
It has over 40 hotel plots and development is taking place in 19 of its hotel projects.

DLF is looking to raise Rs 900 crore by selling its non-core businesses like wind power. “Selling it will take time… we will sell the complete stake. Right now we are in advanced discussions with some of the buyers, but I cannot reveal their names,” Talwar added.

DLF would also be exiting the Delhi convention centre, which would fetch another Rs 850 crore.

–Agencies