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DLF to sell developed properties

Arun Kumar, New Delhi, The Economic Times

May 30, 2011


In a significant shift in strategy, DLF plans to sell developed properties, including five IT parks and its hotel business, hoping to mop up 7,000 crore in the next two years and reduce its burgeoning gross debt of 23,990 crore. India's largest real estate firm's tax dues are also on the rise - touching 1,703.04 crore in the fiscal year 2011. DLF has received an additional tax demand of 546.85 crore from the income tax department in the last quarter of 2010-11, over and above the 1,156.19-crore demand made in the previous quarter, a senior executive in the company said on the condition of anonymity.

Last week, the company reported a consolidated net profit of 344.54 crore in the fourth quarter ended March 11, but that included an income of 93.73 crore brought into the books from the earlier years. Net profit in the corresponding quarter of last year was 426.38 crore. Fourth quarter revenues increased to 2,683 crore from 1,994 crore from the year ago period.

Over the last one-and-a-half years, the real estate major had already sold some non-core assets such as hotel sites in Delhi and Hyderabad as well as non-contiguous land parcels to rake in around 3,000 crore. But it has never sold its buildings and other developed assets.