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DLF seeks to make deep cuts in debt

DLF seeks to make deep cuts in debt
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First Published: Wed, May 25 2011. 11 57 PM IST
Updated: Wed, May 25 2011. 11 57 PM IST
Investors made their feelings abundantly clear about the performance of DLF Ltd, India’s biggest developer, when they hammered the stock down 4.04% on Wednesday, even as brokerages started cutting earnings estimates.
DLF, which posted its lowest quarterly profit in two years and saw sales decrease during the previous fiscal, faces yet another problem. It had net debt of Rs 21,424 crore at the end of March, an increase over the previous fiscal despite some asset sales.
The debt weighs so much on the company that it plans to sell Rs 10,000 crore of non-core assets, double what it had planned earlier. It’s also scaling down investment and capital expenditure in an effort to reduce debt and prevent interest charges from wrecking profit.
Profit fell 19% to Rs 345 crore in the three months ended March fromRs 426 crore a year earlier, the developer said late on Wednesday, falling short of Bloomberg’s Rs 498 crore estimate. Sales rose 35% to Rs 2,680 crore from a year earlier, compared with an estimate of Rs 2,430 crore.
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First Published: Wed, May 25 2011. 11 57 PM IST