DLF sells land parcel in Kochi for Rs 111 crore

The country's largest realty firm DLF has sold four acres of land in Kochi for Rs 111 crore. Company is focusing on its core real estate business and planning to sell non-core assets to boost cash flows and reduce debt.

"We have sold a land parcel in Kochi for Rs 111 crore," DLF Group Chief Financial Officer (CFO) Ashok Tyagi told agency. The land was sold earlier this month to a local developer.

DLF has raised more than Rs 10,000 crore through this process in its non core business. DLF recently sold its cinema business DT Cinema for Rs 500 crore. Last year DLF had sold its hospitality chain Amanresorts to its original founder Adrian Zecha for about Rs 2,200 crore.

The company has exited from its insurance and wind energy businesses. DLF had sold 17 acre land parcel to Lodha group for Rs 2,700 crore. In view of heavy housing sales and high debt, DLF is planning to raise private equity funds at projects level and also partially monetise its rental properties, which comprises of about 30 million sq ft with Rs 2,400 crore annual rental income.

DLF's net debt increased to Rs 21,598 crore as on June 30, from Rs 20,965 crore at the end of the March quarter. Of the total debt, the company said that the net debt obtainable to development business was at Rs 7,598 crore while Rs 14,000 crore apply to rental arm.

Last week, DLF announced its Q1FY16 result and reported 5 percent decline in net profit to Rs 121.55 crore for the quarter ended June 30 y-o-y, due to higher finance cost and rise in operational expenses. However, the total income increased to Rs 2,345.62 crore in June quarter from Rs 1,851.6 crore on yearly basis.

Today DLF is trading at Rs 129.10, up by 0.7 per cent. The 52-week high of the share was Rs 203 and the 52 week low was Rs 94.35.