Dlf New Look In Real Estate Sector

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;}   Attractive pricepoints and a revival in the fortunes of the Real Estate sector   have helped India’s largest realty player lurebuyers for its residential properties. The company is likely ot maintain itsmid-income housing focus which has yielded good results in delhi where it wasable to sell 1,400 units (2 mnsqft) and 1,250 units (1.8 mbsqft) at the Delhi CapitalGreens project (phase I and II, respectively) and 0.5 mnsqft in Bangaloreover the last six months. Including the above, the company has launched about athird of the proposed 15-16 mnsqft residential projects for the fiscal. The storyis not as rosy on the commercial and leasing segments. While the company soldover a 1 mnsqft of commercialand office space in the first quarter and demand seems to be improving, thefortunes of this space is likely to see a significant upswing only next year.Its leasing business, too, is going through a similar business cycle. While things are looking up, the slow and gradual pick up involumes will continue to be a drag on its revenues. Analysts estimate that itsSeptember quarter revenues will be down by half y-o-y. Ebidta margines arelikely to shrink 900-1,000 bps to about 50 per cent as the company realigns itsfocus towards affordablehousing segment (below Rs 30 lakh per unit). The company plans to exitnon-core business (wind power, SEZs) and land bank to raise Rs 5,500 crore in2009-10. This will help it to improve its cash position, manage debt repaymentsof Rs 1,165 crore and increase pace of execution. Though the stock trades at adiscount to its, NAV,   a fall of 10-15per cent in its share price would make it attractive from a long termperspective.

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• Dlf New Look In Real Estate Sector?

  Attractive price points and a revival in the fortunes of the Real Estate sector have helped India’s largest realty player lure buyers for its residential properties.

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