DLF to see money flow in from GIC stake sale by October

DLF had in March decided to sell 40% of DCCDL for Rs 13,000 crore to an affiliate of Singapore's GIC

DLF will start receiving the proceeds from the stake sale in its rental arm in October  this year after the deal is wrapped up.

DLF had in March decided to sell 40 per cent of DCCDL for Rs 13,000 crore to an affiliate of Singapore’s GIC. In an investor call on Saturday, the company said a number of regulatory approvals were pending. GIC will complete its due diligence in the next few weeks.

“We believe that the cash will start coming in by October-November,” a company executive said during the investor call.

DLF said the deal size would be decided one month before closing the transaction. “It is an equity sale, the valuation will be final only a month prior to closing of the deal,” the executive said.

DLF’s net debt increased by Rs 700 crore in January-March to Rs 25,096 crore as housing demand continued to be sluggish. The company’s net debt is likely to rise due to expenses on construction in ongoing projects amid slow sales. According to its presentation, DLF’s net debt climbed to Rs 25,096 crore on March 31 from Rs 24,397 crore on December 31. The company reported Rs 135.63 crore consolidated net profit for the March quarter, mainly on account of a lower tax outgo. It had posted a net loss of Rs 180.54 crore in the same quarter of 2015-16.

Total income fell 8 per cent to Rs 2,511.37 crore in the March quarter from Rs 2,732.76 crore in the year-ago period. Tax expense fell to Rs 54 crore from Rs 164 crore while the company made exceptional profits of Rs 94 crore during the quarter.

DLF completed 14.5 million sq ft in the last financial year. 

“The impact of demonetisation has abated. Demand is returning but is weak. Coupled with softness in demand, we anticipate that the RERA and the GST will lead to uncertainties in the short term,” the company said.