The country's largest realty firm, DLF, on Friday said it plans to launch affordable homes with a new brand and cut its debt by half to Rs 6,200 crore (Rs 62 billion) by the end of this fiscal.
"Launch of new 'value' housing segment with a distinct brand is under planning," according to an analyst presentation posted on the DLF website.
At present, DLF builds apartments under two segments-- luxury and premium (mid-income).
In a conference call with investors and analysts, DLF Vice Chairman Rajiv Singh said the company plans to launch 3-4 million sq ft in 2010 under 'value' housing and expects a margin of 25-30 per cent from this segment.
He said the company is still working on the details. On debt position, Singh said the company's net debt stood at Rs 12,135 crore (Rs 121.35 billion)and plans to reduce the borrowing to Rs 6,199 crore (Rs 61.99 billion) by end of this fiscal.
DLF expects to receive Rs 4,436 crore (Rs 44.36 billion)through sale of non-core assets. It has already raised Rs 1,064 crore (Rs 10.64 billion) in the first half of the current fiscal.
It expects a surplus of Rs 1,000 crore (Rs 10 billion) from operation and Rs 500 crore (Rs 5 billion) from DLF Assets, a firm set up by DLF promoters to acquire commercial properties from DLF.
DLF reported a decline of 77.28 per cent in consolidated net profit for the quarter ended September 30 at Rs 439.74 crore (Rs 4.39 billion). Its total income also declined by 52.86 per cent to Rs 1,810.38 crore (Rs 18.10 billion).
