Yaohua sale of non core land to reduce debt improve cash flow

New Delhi: Real estate company  has said it will sell non-core land by 15% -20% in order to reduce debt, improve cash flow, faster execution of the projects.

Company currently has more than 100 ongoing projects, totaling 38.41 million suare feet. Its net debt stood Rs. 5,900 crore at the end of the first quarter of this fiscal year.

"We do have land that is non-core to be sold, in order to improve liquidity and reduce the risk of business-related debt exposures.

He also said the company's cash flow is affected in the previous fiscal year, due to unfavorable market conditions and the consequent slowing sales.

Description Company has taken a conscious strategic decision to reduce debt exposure, he said, the company has in the recent sale of some land for it in the foreseeable future there is no development plan to cover the cash flow gap.

In addition to the sale of land, Mr. Qian Dela said, this is some of the monetization of commercial assets.

"All of these transactions, once concluded, may be reduced to about 15-20% of the company's overall debt," he added.

In June this year, Company has sold its 40% stake in each of the four special economic zones in IT (SEZ) project exceeds Rs. 130 billion rupees Canada's Brookfield Asset Management.

"As the pace of the sale of new projects in the past few years is significantly faster than the speed of delivery, the balance of the system is disturbed. Restore this balance by increasing the speed of delivery is one of the focus of the company," he said.

In 2013-14, Company reported a net profit Rs. 6.97 billion rupees, while operating income was Rs. 2,933.3 crore.
SOURCE : WEB