Building brick by brick
Initiatives on business consolidation paying off: We think DLF has been making the right moves in terms of fixing its business efforts, which have now started bearing fruit. Debt reduction has started to come through and more should follow. A revised execution strategy is also in place (15msf+-million sq ft—deliveries expected in FY13). As the company turns on launches in its core north India markets, we expect a turnaround in the operating cash flows for the company going into FY14. Some of the key steps undertaken to improve its business position over the last year are:
(i) Reducing debt levels by asset sales: Some of the key large transactions have been concluded (NTC, Aman Resorts) generating Rs 43bn in asset sales. The company now seems to be closer to its net debt target of R185 bn by FY13 end (JPMe-R190 bn). Post-NTC
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