India News
Search Web Directory
News Home
DLF plans to return to Hyderabad, Chennai as cash flows improve
Posted on 13th August 2018
Bengaluru: India’s most valuable real estate firm DLF Ltd is planning to return to Hyderabad and Chennai, stepping out of its home market of National Capital Region (NCR), to develop new office and residential projects, a top executive said. The move follows the company achieving break-even in operating cash flow in the June quarter. After nearly eight quarters of spending more than cash inflows, DLF expects to start generating free cash flows from the December quarter.

In the medium term, it will invest some of this into new projects.

The company is planning to build office spaces in the two cities, apart from select residential projects, DLF group chief financial officer Saurabh Chawla said in an interview.

In Hyderabad, it plans to develop 2.5 million sq. ft of commercial office as part of its special economic zone.

It also plans to develop a mid-income residential project with a local developer.

In Chennai, DLF already has a special economic zone (SEZ) and will construct an additional 1 million sq. ft of office space. After long negotiations, a 5.56-acre plot in Chennai that DLF had bought from the Madras Race Club (MRC) for ₹360 crore this year, recently got permission to be converted from leasehold to freehold.

DLF plans to build a mixed-use project combining office and retail space on it.

“DLF has taken a pragmatic approach and in 2018-19, we set upon ourselves certain balance sheet metrics in terms of debt and cash-flow management. In terms of free cash flows, the plan is to invest 50% of it towards developing new assets, both commercial and residential. However, we are not getting into a land buying spree,” Chawla said.

Office space in Hyderabad and Chennai, once built, will be transferred to DLF Assets Ltd (DAL), which is now a part of its rental arm DLF Cyber City Developers Ltd (DCDDL), as per an earlier agreement.

DLF is also in talks with private equity funds to raise around ₹750 crore to make certain payments with a 11.76 acre land it bought earlier this year from Haryana State Industrial and Infrastructure Development Corp. (HSIIDC) for around ₹1,500 crore. The land, which is close to DLF Cyber City, was a strategic purchase for the developer which wants to form an equal equity shareholding partnership with an investor.

“The deal will be closed in the September quarter but project development will start only in the next financial year. The capital raised will be used for land payment, stamp duty and other government charges,” said Chawla.

The developer also plans to sell off plots in its legacy project DLF City in Gurugram.

In December, 2017, DLF concluded the sale of 33.34% stake in its rental arm DCCDL to sovereign wealth fund GIC for around 9,000 crore. DCCDL, a joint venture with GIC, will act as a ‘business trust’ expected to double the size of its portfolio from existing 27 million sq. ft over the next decade.

DLF, which has been following a build-and-sell model for its residential projects, plans to sell down its existing, ready inventory valued at ₹13,500 crore over the next five to six years, as it builds fresh inventory of finished projects, the company said in an analyst presentation during the weekend.

In a 9 August rating note, Icra Ltd said DLF’s planned qualified institutional placement (QIP) and warrants conversion will be two critical equity raising events which will help the company’s debt reduction programme.

The QIP, expected to be concluded in the second half of 2018-19, will yield a significant amount and the conversion of warrants issued to promoters into equity shares by June 2019 would lead to an inflow of 2,250 crore for DLF.

“...Timely conclusion of these transactions and the total quantum raised should further support the cash flows of the company and significantly improve its capital structure while strengthening its credit risk profile,” Icra noted.

On Friday, DLF reported a 56% increase in its net profit to ₹172.77 crore for the April-June period compared with the corresponding quarter a year ago. Its total income, however, dropped 25.03% to 1,657.67 crore in the first quarter, during the same period.

Related Companies: DLF Ltd   

Other Latest News
Now, Indian Railways passengers can book tickets for Kashi Vishwanath Temple at Varanasi station
Posted on 12th December 2019
Indian Railways passengers, commoners can now book tickets for visiting the Kashi Vishwanath Temple in Varanasi. In a joint initiative by the national transporter and Shri Kashi Vishwanath Temple Trust, help-desks are being opened at Varanasi Junction Railway Station, also known as Varanasi Cantt Railway Station (BSB). Minister of State for Railways Suresh Angadi officially launched the help-desk project at the station premises earlier this year.

Hyderabad vet rape-murder: SC for impartial probe into killing of accused
Posted on 12th December 2019

The Supreme Court on Thursday said there should be an impartial inquiry into the encounter killings of the four men accused in the gangrape and murder of a veterinarian in Telangana.

An apex court bench headed by Chief Justice S A Bobde was hearing two public interest litigations seeking an independent probe into the deaths last week.

Manappuram Finance rallies 8% in two days, trades near record high
Posted on 12th December 2019
Shares of Manappuram Finance moved higher by 2 per cent to Rs 170 on Thursday, inching towards its all-time high level on the BSE. The stock of non-banking finance company (NBFC) was trading close to its record high of Rs 174 touched on November 4, 2019. It rallied 8 per cent in the past two trading days on the back of heavy delivery-based volumes.

From Polycab India to IRCTC, IPOs that doubled your money in 2019
Posted on 12th December 2019
Calendar year 2019 (CY19) has turned out to be a good year for those who invested in equities via the primary market route with most of the new listings outperforming the S&P Sensex. As many as 92 per cent of the stocks of companies that listed in 2019 are trading well above their issue price and have given a return of over 200 per cent.

Among individual stocks, investors in four new listed companies - Indian Railway Catering and Tourism Corporation (IRCTC), IndiaMART InterMESH, Affle (India) and Polycab India - have doubled their money post their stock debuted at the exchanges.

Indian Union Muslim League moves SC challenging Citizenship Bill
Posted on 12th December 2019
The Indian Union Muslim League (IUML) moved the Supreme Court on Thursday challenging the Citizenship (Amendment) Bill, a day after it was passed in the Rajya Sabha completing the legislative process for giving Indian citizenship to non-Muslim migrants from Pakistan, Afghanistan and Bangladesh.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for DLF plans to return to Hyderabad, Chennai as cash flows improve
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for DLF plans to return to Hyderabad, Chennai as cash flows improve

Most Read News

Now, Indian Railways passengers can book tickets for Kashi Vishwanath Temple at Varanasi station

Coca-Cola moves out of bottling ops in North India, to divest three plants

Growth of world cities to decline in 2020-21 amid global slump: Research

UP cops arrest owners of bogus brokerage involved in Rs 4,122 cr DHFL scam

Dish TV India zooms 15% after clarification on CARE ratings downgrade

More India News

Photo Gallery

Kapoor & Sons(12 Images)Kapoor & Sons
Jawaan(10 Images) Jawaan
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019
    All Rights Reserved
Privacy Statement