The demand for realty projects may not pick up even at lower prices, and asset monetization may not happen as scheduled, IDFC-SSKI said in its report. “...If asset monetization doesn't happen as planned or at the desired valuation, DLF would fall short of the targeted cash flow generation to repay long-term debt...leading to further restructuring/dilution of equity,” it said. The report said steep rise in DLF’s receivables over the last two years to Rs9,600 crore has been a concern.
Though there has been some interest in mid-segment housing, luxury residences, premium office and retail projects have a long way to go before they can recover, said Kuvelkar.
First Global said in a 16 June report that the fundamentals of realty companies continue to remain weak despite the inflow of liquidity. Not only liquidity, but actual sales will determine how these companies finally come out of the crisis, it added.
madhurima.n@livemint.com
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