No fresh timeline for DLF asset sale

DLF, which had earlier targeted September 2012 to close three big-ticket deals, is now looking for more time to sell some of its showcase non-core assets.

In an analyst call on Tuesday, the realty player said it aimed to cut its debt by Rs 5,000 crore by the end of March 2013. It is aiming to complete the sale of all three non-core assets — NTC Mill land in Mumbai, Aman Hotels and Resorts and wind energy business—anytime before the financial year ends.

DLF Chief Financial Officer, Ashok Tyagi, said that all the three deals were at an advanced stage. “Hopefully you would get some announcement in a short time,” he said. However, he added there is no timeline to the deals. “It may be October or November, but definitely before the financial year ends.”

After the Q4 FY12 result, DLF had set September 2012 as the new target date for completing these deals. In the analysts’ presentation, the company had said that after completing the big ticket sales by September, it would strategise for the next round of asset divestment.

Net debt stood at Rs 22,680 crore as of June 2012, marginally down from Rs 22,725 crore in March 2012. Net profit declined 18 per cent in the quarter ended June 30, at Rs 292 crore, from Rs 358 crore in the corresponding quarter last year.

The company will launch new projects only in the mid-end of the third quarter, which will include the Magnolia Phase 2 launch, Golf Course, and follow up launches in the rest of India. “We will get new launches from the mid of the third quarter onwards,” said Tyagi.

The company will also follow the international accounting standards, where revenue recognition starts after 25 per cent of the construction expenditure. The new accounting policy will apply for new project licences, and the revenue recognition will kick off after 6-9 months of the project launch, explained Tyagi.

The company plans to come up with the new rental rates for DLF Cybercity in the next three to six months with the coming of rapid metro in the area.

The Noida mall, ‘Mall of India’ would be completed by the second half of next fiscal, but the pre-leasing will start in six months time, said DLF. However, analysts argued that the project could be delayed as there are not many takers for malls right now.