The country's largest realty firm DLF today said it will continue to explore possibilities for selling its non-core assets, mainly to reduce its over Rs 18,000 crore debt.
"Your company will keep options open for divestment of non-core assets and businesses, the proceeds of which will be predominantly used to repay debt," DLF Chairman K P Singh told shareholders at the firm's 45th Annual General Meeting here.
He, however, did not elaborate on how much the company is planning to raise and which are the properties or businesses that it is looking to exit.
DLF Group CFO Ashok Tyagi had earlier this month said that the company was planning to raise up to Rs 3,000 crore this fiscal through sale of non-core assets.
The company's net debt stood at Rs 18,463 crore at the end of the June-quarter and it plans to cut the loans through operational cash flows and sale of non-core assets, which includes land parcels meant for development of hotels.
The net debt had increased by about 25 per cent from Rs 14,820 crore at the end of March quarter this year.
DLF had decided to raise Rs 5,500 crore last fiscal through sale of non-core assets, but was able to raise only Rs 1,800 crore. It has decided to retain the wind energy business valued at Rs 1,000 crore because of tax benefits.
In 2009-10, the company divested 19 million sq ft of land in many locations, including Mumbai, Gurgaon and Bangalore.
The company is also exploring possibilities for strategic partnerships in its hospitality venture Aman Resorts, where it holds 97 per cent stake.
Besides, DLF had said that it might withdraw from developing much-hyped affordable houses as these are unattractive due to low margins. It had planned to build 1,00,000 affordable homes at a price below Rs 20 lakh at major cities and the first such project was to come in Gurgaon.
DLF had reported 3.80 per cent jump in consolidated net profit for the quarter ended June 30 to Rs 411.03 crore from Rs 396 crore in corresponding period of the last fiscal.
The consolidated sales and other receipts rose 22.95 per cent to Rs 2,028.53 crore in the quarter under review from Rs 1,649.86 crore in the same period last year.