The country's largest real estate developer, DLF, plans to drop those projects where margins are low and rationalise construction activities as it wants to focus on improving the company's cash flow and reduce debt by half.
"Going forward, DLF will continue to focus on liquidity preservation and launch projects in line with market demand after adequate research of the same," according to company's annual report posted on its website.
As part of its corporate strategy, DLF intends to "relinquish its projects where the development margins are low in today's economic context".
The objective is to improve cash flows today rather than developing those projects over a period of 2-3 years while running a risk during the period of construction of these projects, the company added.
DLF said it is focusing on timely execution and delivery of its projects to meet the timelines committed to its customers. Therefore, the company intends to "prioritise its construction activity and construction spend with focus on conserving capital".
The company has already slowed down construction of 27 million sq ft of capital intensive office and retail projects, the report said.
Reeling under the huge debt of over Rs 10,000 crore, DLF said it is focusing on improving the debt position "with a clear visibility of the action plan which is expected to reduce debt by half".
