HDIL to sell land parcels in Mumbai, Hyderabad to pare debt
May 25 2014 , Mumbai
The realty firm wants to sell off its 100-acre land parcel in Hyderabad and some of its commercial projects in Mumbai this fiscal.
"We want to monetise our assets where we have around 40-45% stake in joint venture projects. Our focus for the fiscal will be reducing our debt by selling assets," HDIL Vice-President (Finance & Investor Relations) Hari Prakash Pandey told PTI here.
He said the company plans to put its 100-acre land parcel at Kukatpally in Hyderabad on block as this market has witnessed a revival in the last one month.
According to sources, the current rates prevailing in Hyderabad is around Rs 4-6 crore per acre.
The company managed to reduce its consolidated debt from Rs 4,004 crore in FY13 to Rs 3,511 crore in FY14.
On standalone basis, its debt came down by 22% on year-on-year basis to Rs 2,441 crore. This fiscal HDIL intends to reduce its debt by Rs 600-700 crore.
Pandey said there are 3-4 commercial properties in Mumbai, where HDIL has a significant stake, which it plans to dispose this year and focus only on residential projects in the Mumbai Metropolitan Region.
Sale of these properties could fetch Rs 1,000-1200 crore.
The company last fiscal sold its 45 per cent stake in HDIL Leisure for Rs 290 crore. It also sold a land parcel in Delhi.
The real estate developer had planned to put on block its 70 acre land in Kochi for mobilising funds, but has now postponed that decision in view of current market condition.
"However, since the market condition is not conducive, we have decided to postpone our decision to sell this land. We are also open for joint development, but so far we have decided to go slow on this," Pandey said.
He said the company had invested around Rs 300 crore for purchasing properties in Kochi and Hyderabad.
HDIL posted a net profit of Rs 113.52 crore in the March quarter against a loss of Rs 279.95 crore a year ago. Total revenue rose 66.7% to Rs 259.27 crore from Rs 155.53 crore in the same quarter of FY13.