DLF has emerged as the successful bidder for a 11.76 acre land parcel in Gurugram. In an interview with CNBC-TV18, Ashok Tyagi, Group CFO of DLF spoke about the latest happenings in his company and sector.
Focus for the next two-three years would be to pare down the completed inventory and grow commercial business and JV with GIC, Saurabh Chawla, Senior ED-Finance, DLF.
In an interview to CNBC-TV18, Ashok Tyagi, Group CFO, DLF gave a ground check on how real estate demand is shaping up.
DLF has sealed the deal with GIC to sell stake in the rental arm. In an interview to CNBC-TV18, Saurabh Chawla, Senior ED-Finance at DLF spoke at length about the deal and latest happenings in the company.
In an interview to CNBC-TV18, Ashok Tyagi, Group CFO of DLF spoke about the latest happenings in the company as well as the takeaways from the RBI policy yesterday in terms of home loans becoming more affordable.
"Any regulation in any sector is well intentioned. With all due respect, any regulation is better than no regulation but subsequently licensing needs to go otherwise it would be an over-regulated sector", Rajeev Talwar, Group ED, DLF told CNBC-TV18.
One of the largest realty developer DLF has entered into an exclusive pact with the private equity firm GIC. The documentation work for the deal will take 2-3 months, said Ashok Tyagi, DLF‘s Chief Financial Officer.
DLF Chief Rajeev Talwar is optimistic on the future of real estate segment. His optimism stems from the need for construction and housing. To spur GDP growth, there is a need for construction, Talwar said.
Ashok Tyagi, Group CFO, DLF said that the government‘s move to demonetise Rs 500 and Rs 1000 notes is a bold and disruptive move.
DLF is targeting Rs 3000-3500 crore of pre-sales booking for the fiscal year, said Saurabh Chawla, Senior ED Finance at the company.
In an interview with CNBC-TV18, Saurabh Chawla, Senior ED of Finance at DLF said that the rationale behind this JV is to increase focus on premium and luxury projects and Ridgewood will take 100 percent control in certain projects post re-alignement.
DLF Group CEO KP Singh will look to retire a part of the company's debt by infusing Rs 10,000 crore via a preferential issue of shares. Adhidev Chattopadhyay of Elara Capital maintained that Rs 10000 crore valuation still remains a question mark as some had earlier said that the sum would be around Rs 6000-7000 crore.
Speaking to CNBC-TV18, Saurabh Chawla, Senior ED Finance at DLF said this is a year- old transaction which DLF sees as a step forward to create a pure play real estate entity.
DLF Group CEO Ashok Tyagi says the company still has a substantial unsold inventory and the market is still weak for existing and new launches.
On the matter of search engine Google's alleged anti-competitive practices, Ashok Chawla, Chairman, Competition Commission of India (CCI) said that it will take quite â€œsome timeâ€ before there is any finality on the matter.
The company on Thursday decided to sell 40 percent in the company's rental arm DLF Cyber City Developers for an estimated Rs 14,000 crore to institutional investors.
The development comes as a huge relief for home buyers , who will now be able to get occupancy certificates of their apartment that had been held up for long due to an order passed by the National Green Tribunal (NGT).
Ashok Tyagi, CFO, DLF told CNBC-TV18 that it plans to reduce the rental debt by 100 plus basis points in the current year through sale of none-core asset and investment in projects with private equity players.
A few new launches are in the design stage, Chawla said, adding that the unsold portions of luxury projects Camellias and Crest are around Rs 10,000 crore.
In an interaction with CNBC-TV18, CCI chairman Ashok Chawla said to that these cases are under investigation.
The company pays roughly Rs 750 crore interest every month, including dividend on preference shares, on its debt. Tyagi says the lower borrowing rate should help the company save around Rs 175 crore on dividend payouts.
Rajeev Talwar, Group ED, DLF said the company is still studying the fine print of the order and will comment only after analysing it thoroughly.
The rise in debt was basically because of decrease in sales and the profits too were eaten up by higher interest burden, said Ashok Tyagi, Group CFO, DLF.
BK Batra, executive director and group head-corporate banking, IDBI Bank says the lender banks-SBI, IDBI and ICICI- hold 24 percent equity of Ratnagiri Gas and Power Private Limited.
In an interview to CNBC-TV18, Ashok Chawla, Chairperson, CCI, said the order on Sun-Ranbaxy merger is final and that the companies could be given additional 4 months in case the product divestment process exceeds 6 months.