HDIL progressing towards debt reduction by the end of FY16
With a specific end goal to decrease its debts, Real Estate firm Housing Development Infrastructure Limited (HDIL) has put up its 113.47 acre industrial plot in Gujarat, for sale. Organization’s philosophy of exiting non-core asset is said to be another reason for settling on this decision to put the plot up for sale.
The organization is hoping to reach up to Rs 9,000 crore before the end of second quarter of current year.
The industrial plot is situated close to Ranoli railway station, which lies between the Ahmedabad- Vadodara hall. It’s a ward range of Vadodara Urban Development Authority. HDIL has decreased its debts by approximately Rs 685 crore to Rs. 3,142.4 crore till the end of last year.
Vice President of Finance and Investor Relations division at HDIL, Mr. Hariprakash Pandey specified that the association claims this modern plot since last half decade. This step will help in enhancing a portion of the non- core assets which will eventually balance the balance sheet more and that is be possible by lessening the debts and concentrating more upon the working capital. Then again, HDIL declined to remark on the offer of industrial plot.
The organization has reduced the debts by Rs 10 billion and narrowed it down to Rs 32 billion in short span of 2 years. HDIL intends to lessen the debts and reach up to Rs 25 billion by the end of FY16.
Pandey commented on company’s vision to reduce debts by Rs 7 billion in FY16 and said, “Rs. 25 billion is done with respect to our internal accruals. Now the non-core assets what we have bought it out in Baroda as of today we have to see how this transaction goes ahead. The intention is to use all the non- core assets whichever we have outside Mumbai. We have couple of land parcel in Hyderabad and Cochin. So between Hyderabad, Cochin and Baroda we want to off load this land parcels and try and bring the debt further down. However Rs. 25 billion is irrespective of whether whatever sales proceeds come from this land parcel”.
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