DLF Ltd.: India's Leading Real Estate Company in Trouble

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR382
Case Length : 27 Pages
Period : 2005-2010
Pub Date : 2010
Teaching Note : Not Available
Organization : DLF Limited
Industry : Real Estate
Countries : India

To download DLF Ltd.: India's Leading Real Estate Company in Trouble case study (Case Code: BSTR382) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 600;
For delivery through courier (within India): Rs. 600 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

"Who would have imagined a year back that one of the country's largest developers would teeter on the brink of insolvency? As the economy shifted into a higher gear and the markets burst to meteoric highs, realty firms were among the most buoyant. But that's distant history."¹

- Outlook Profit, June 12, 2009.

In Real Trouble?

As on June 12, 2010, DLF Limited (DLF), India's largest real estate company, had accumulated an outstanding debt of more than US$3100² million, marginally below the record high of US$3635 million in the month of March 2009. The net profit of the company also plunged by more than 60%, falling from US$993.25 million in financial year 2008-2009 to US$384.44 million in financial year 2009-2010. In addition to decreasing profits, DLF was struggling with an enormous outstanding debt and a high debt to equity ratio which stood at around 0.70 in the month of June 2010.³ To reduce its debt burden, DLF was considering selling 97% of its stake in Aman Resorts⁴, a hotel chain it had acquired in November 2007 for about US$400 million⁵, to Khazanah.⁶

DLF Ltd.: India's Leading Real Estate Company in Trouble - Next Page >>

1] Mohammed Ekramul Haque, "Down the Debt Hole," Outlook Profit, June 12, 2009.
2] US$1 = 45 Indian Rupees (Rs.) approximately, as on September 25, 2010.
3] "DLF to Raise Rs 2,700 Cr to Reduce Debt," http://sify.com, May 16, 2010.
4] Aman Resorts is a chain of 23 hotels present in 15 countries as of June 2010. Its Indian assets included three resorts - one in Delhi and two in Rajasthan.
5] Irfan Khan, "DLF to Sell Aman Resorts, Appoints Goldman to Seek Buyers," http://dealcurry.com, April 5, 2010.
6] Khazanah is a Malaysian sovereign wealth fund. It was incorporated under the Companies' Act of 1965 in September 1993 as a public limited company and is owned by the ministry of finance, Malaysia. It has a stake in more than 50 companies with assets totaling in excess of US$ 25 billion.

Custom Search

Case Studies in Business Strategy Volume VI

Case Study Volumes Collection

Business Strategy
Workbooks Collection

Business Strategy
Textbooks Collection

Business Environment	Business Ethics	Business Reports	Business Strategy
Corporate Governance	Economics	Enterprise Risk Management	Finance
HRM	Innovation	Insurance	IT and Systems
Leadership and Entrepreneurship	Marketing	Miscellaneous	Operations
Project Management	Short Case Studies	Cases in other Languages	Free Case Studies