India's largest realty firm DLF has reduced net debt by Rs 861 crore in the second quarter of this fiscal at Rs 19,508 crore and the company is targeting to cut it further at Rs 17,500 crore level by March next year.
In an analyst presentation, DLF also said that it is negotiating with the multiple investors to sell luxury hotel chain Amanresorts and expects to close the transaction soon.
"Sequentially, the net debt has declined by Rs 861 crore from Rs 20,369 crore to Rs 19,508 crore. Given the pipeline of divestitures already executed but not yet closed, we maintain the FY14 guidance of net debt of Rs 17,500 crore," DLF said.
Sale of non-core assets and internal accruals helped the company in bringing down the net debt level to below Rs 20,000 crore level.
Realisation from divestment of non-core assets stood at Rs 870 crore during first six months of this fiscal and the company hopes to garner another Rs 1,000 crore in second half of this fiscal from this process.
On the status of divesting Amanresorts, DLF said it is in "negotiations with multiple bidders/investors on the Share Purchase Agreement. Substantial diligence has been completed. Targeting closure of the transaction in near future".
In December 2012, DLF announced the deal with Indonesian hotelier Adrian Zecha to sell Amanresorts for an estimated $300 million and expected the transaction to close by February 2013. Zecha, the founder of Amanresorts, missed the February deadline and exclusivity period was extended till June end.
In July, DLF walked out of a pact to exclusively negotiate sale of Amanresorts with Zecha and opened talks with 4 other potential buyers.
To reduce debt and focus on core realty business, DLF has been selling its non-core businesses and assets such as plots, hotels, wind mills and insurance venture.
It has raised about Rs 10,000 crore in last three years through divestment of its non-core assets.