To reduce debts DLF to focus on luxury homes

DLF ltd which is biggest real estatedeveloper in India is mounted with debts and to reduce these debts they are planning to focus on building luxury homes and selling non-crore assets. The company reported 39 per cent decline in the fourth quarter. DLF builds offices, retail centres and homes. It is among the top Indian developers who are facing difficulty to improve profitability due to the high interest costs and mounting debts. In the December quarter GDP was 6.1 per cent which is lowest in three years. It is expected that in the next few quarters also the current economic business environment would continue to stay challenging. 

Compared to 3.44 billion rupees profit last year, the net profit in the end of March quarter was reported to be 2.12 billion. Revenue was down about 2 per cent. The investors are most worried about DLF’s debt of $4.32 billion in December 2011. DLF is struggling to meet target of selling non-crore assets whose value accounts for 60 to 70 billion rupees as it experienced an erosion of 37 per cent in its share price. The lenders and investors are parting their way from the sector because the developers have failed to reduce the debts.