New Delhi/Bangalore: DLF Ltd, India’s largest property developer, has firmed plans to reduce its debt by 5,000 crore by March by selling three-four large non-core assets and through sales from projects it expects to launch from October.

The company in a presentation to analysts on Tuesday said it reduced debt by 45 crore to 22,680 crore in the April-June quarter.

DLF expects to sell three so-called non-core properties—its hotel business Aman Resorts, a prime plot in Mumbai, and its wind energy business.

The company will announce the closure of these sales shortly, said executive vice-president, finance, Saurabh Chawla. “We remain committed to our divestments that we have announced earlier," he said.

DLF raised 369 crore in the first quarter by selling non-core assets. The company registered sales bookings of 1.34 million sq ft. in the first quarter, lower than the 6.75 million sq ft. of sales bookings it had in the preceding March quarter.

“The asset sale target seems realistic. But debt reduction will primarily depend on the sale of two of the large assets—the prime plot in Mumbai and the wind energy business," said Parikshit Kandpal, senior research analyst, Karvy Stock Broking Ltd. “The two deals are believed to be in the advanced stages."

DLF said it expects overall sales of 6,000-6,500 crore in this fiscal year, of which a significant chunk will likely come from launches in Gurgaon and follow-up launches in existing projects beginning October. “Starting since January this year till June 2013, we target to sell more than 20 million sq ft. of space across various categories of real estate development," Chawla said.

This is in line with analysts’ estimates. “We expect the sales to gain momentum in the second half of the fiscal," said Kandpal.

DLF on Monday reported June quarter profit dropped 18.3% to 292.79 crore from a year earlier on lower demand in key markets. Revenue fell 10.14% to 2,197.71 crore. On Tuesday, shares of DLF rose 2.98% to close at 217.55 on BSE, while the benchmark Sensex rose 1.08% to 17,601.78 points.

devesh@livemint.com

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