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No non-core asset sale in Q4, says DLF

09 Mar 2012 Evaluate

DLF is likely to close the current financialyear with a realization of around Rs 1,600 crore from non-core asset sale, thesame level that was achieved end of the December third quarter. The fourthquarter of 2011-12 will be muted for the company, with all big ticket non-coreasset sales now pushed to 2012-13. The companywas targeting Rs 6,000 crore to Rs 7,000 crore from divestment of non-coreassets by March 2013. This financial year, DLF was eyeing Rs 3,000-3,500 crorefrom sale of two mega non-core asset sales, Aman hotel and Pune SEZ.Of the Rs 6,000 crore to Rs 7,000 crore non-core asset sale target, around Rs5,000 crore will be used by the company to cut its debt. As of end of thirdquarter, DLF had a net debt of Rs 22,758 crore.

The company offloaded its Pune SEZ toBlackstone in the October –November quarter at Rs 810 crore. Despite raising Rs1,600 crore in the first three quarters of this financial year from non-coreasset sale, its net debt did not see a significant decline. In the firstquarter, the net debt went up by Rs 100 crore, in the second quarter it rose Rs1,000 crore and in the third quarter it came down by a mere Rs 169 crore,against sales worth over Rs 1200 crore in that quarter. Around Rs 300-400 croreper quarter is the minimum capex requirement to sustain ourselves in thisbusiness, which is around Rs 1,200 crore a year. 

DLF Share Price

601.80 12.10 (2.05%)
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Company Name CMP
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DLF 601.80
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