HDIL eyes Rs 750 crore from sale of non-core assets

To reduce its debt by nearly 25 per cent, Mumbai-based property developer HDIL hopes to monetise all its non-core assets in coming fiscal and expects to garner around Rs 750 crore which will be utilised for paring debt, a top company official said.
The company has properties in Kochi, Delhi, Hyderabad and Gujarat which it plans to put on block.
"Our focus remains on expanding our presence in Mumbai. Therefore, we believe that instead of sitting on these assets we can monetise them to reduce our debt and concentrate on execution of current projects," its Vice-Chairman and Managing Director Sarang Wadhawan told PTI.

As of December 31, 2014, the company's debt stands at Rs 3,142.4 crore.
"If all these non-core properties are monetised in FY16, we expect to garner nearly Rs 750 crore, which we will use to repay the debt," he said.
The company has a 113 acres land parcel in Baroda, which is an industrial zone, 70 acre plot in Kochi, 100 acres each in Hyderabad and Noida.

While the company plans to sell the properties in Baroda, Hyderabad and Delhi, it is looking for a joint venture for the parcel in Kochi.
HDIL had planned to set up an IT park on the 70 acre of land at the Special Economic Zone (SEZ) at Kalamassery with a planned investment of Rs 2,300 crore.

The company plans to reduce its debt by another 25 per cent in next fiscal (2015-16), he said.
"Every year, we are trying to reduce our debt to the possible extent. Our intent is to further reduce our debt by 25 per cent in FY16 to less than Rs 2,500 crore," Wadhawan said.
Apart from monetising assets, the company is focusing on executing ongoing projects and increasing sales.
"These are the projects, which were stuck due to various reasons. But now as the execution has picked up, most of them have reached completion stage and sales will increase. These proceeds will be used to fund our working capital requirement as well as for paring debt," he added.

HDIL reported a four-fold increase in revenue for the quarter ended December 31, 2014, at Rs 359.50 crore against Rs 89.63 crore in third quarter of 2013-14. This was mainly driven by sales in commercial projects in Kurla and Goregaon.
The company also plans to launch the first phase of its affordable housing project 'Planet HDIL' in Virar and another in Panvel.