DLF has settled the receivables that were due to DLF Cyber City Developers Ltd (DCCDL) that stood at Rs 8,700 crore. Ashok Tyagi, whole time director of DLF, spoke about the settlement and the company's plans after last month's corporate tax rate cuts announced by finance minister Nirmala Sitharaman, in an interview with CNBC-TV18.
Tyagi said the complete receivables have been paid off as of October 1. “The total outstanding due from DLF to DLF Cyber City Developers Ltd (DCCDL) was a remnant of the closure of transaction in December 2017 with GIC,” he said.
“We had a total outstanding of Rs 8,700 crore. Therefore, we have transferred entities which had five different assets of ours which was either rent bearing like Mall of India at Noida and Saket Mall or which had shareholding in commercial land parcels at Gurugram, Chennai and about 50 percent holding in joint venture that we had with Hines.
“Therefore, that coupled with a net cash settlement of about Rs 475 crore odd is the total quantum that is taken but now as of October 1st this complete receivable is squared off,” added Tyagi.
He further said that the total external debt plus DCCDL's debt as on January 1 was at Rs 17,000 crore, which today should be a number between Rs 3,500-4,000 crore.
Talking about rental base, Tyagi said: “Our total rental base including DLF and DCCDL combined is about Rs 3,500-3,600 crore as of today. We have new asset commissioning in Gurugram called DLF Cyber Park. So we will be at Rs 4,000 crore number and of this Rs 4,000 crore roughly 90 percent plus will now reside in DCCDL and about 8-10 percent of the total rentals would reside on the DLF side of equation.”
On industry, he said: “Over at least a year, if not longer, the way the real estate sector has been slicing off in most micro markets on the residential side is that there are three or four players per geography who have fixed their balance sheets and have access to debt from class ‘A’ lenders like in our case our current lender profile would be HDFC, ICICI, Standard Chartered, HSBC, Kotak sort of banks.
"Unfortunately there was a vast variety of real estate companies who were not able to access funds from these lenders and at time the HFCs (housing finance companies) and NBFCs (non-bank finance companies) were great source of lending to them and that in the last one odd year has begun drying up for a variety of reasons beginning from IL&FS (Infrastructure Leasing & Financial Services) piece that began in October,” he added.
On sales guidance, Tyagi said: “Our sales guidance for the current year is about Rs 2,700 crore. In Q1 we did about Rs 700 and in Q2 also we should be hitting the same number. So we appear to be on track for Rs 2,700 number that we had put it.”
About a third of the total sales for FY20 will come from super-luxury segment, he added.