Home » Bangalore » Crest-fallen: HC order throws spanner in DLF’s dream project

Despite loss of Rs 4 crore in its first quarter because of fragile launches, poor cash flows and an increasing debt pile several brokerages are still taking chance on the sales and equity insurances of DLF’s large property asset. Moreover, as per assumption of Morgan DLF’s margins will continue to remain weak for the next couple of quarters due to severe lucrative older projects are about to complete, and no contribution from the high-margin new launches. The company stock has lost more than 20 percent in past three months despite paring its debt through asset sales.

With the launch of its high-value premium Crest project in Gurgaon, brokerage CLSA assumes that DLF will reverse its cash flows and profit and will loss deterioration. Unfortunately, both the brokerage and the realty major are under shock as the Gurgaon-based buyer association is fighting DLF from past three years, has now secured a stay order against this latest luxury residential project as well as Chandigarh High Court has stayed DLF from selling, marketing and constructing the project. The recent ‘Stay’ by the Chandigarh HC on the construction of Crest in reference to resident welfare association of Park Place who alleges that construction of Crest is on Park Place FAR has brought about great concerns on progress of these projects.

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