CRISIL Ratings has upgraded DLF Cyber City Developers (DCCDL) to CRISIL AAA (Stable) due to strong business fundamentals, high occupancy, and improved repurposing them for this project toward financial risk profile. DCCDL operates a commercial real estate portfolio of 40.4 million square feet, with 93% occupancy across key cities.
The company plans to add office and retail space soon The Kanpur Metro project has reached a significant milestone with the launch of Tunnel Boring Machine (TBM) ‘Parvati’ at Rawatpur Station for Line 2. This 8.38 km corridor will connect Agriculture University to Barra-8, improving urban mobility in Kanpur.
TBM ‘Parvati’ and Its Role TBM ‘Parvati’ (S-840C) is a refurbished Herrenknecht The machine will execute two key tunneling tasks Earth Pressure Balance (EPB) machine with a 6.5-meter diameter. It is the seventh TBM commissioned for the Kanpur Metro Phase 1 project and the third assigned to Package KNPCC-11.
Constructing a 750-meter tunnel from Rawatpur to Kakadeo for the up-line After completion, being transported to Kakadeo Station for a 700-meter tunnel towards Double Pullia from ITD Cementation, repurposing them for this project toward enhancing Kanpur’s public transportation infrastructure, ensuring smoother urban connectivity and reduced traffic congestion.
Package KNPCC-11 and Project Scope Package KNPCC-11 involves the construction of twin tunnels for Line 2’s 4.08 km underground section, along with three underground stations: Rawatpur, Kakadeo, and Double Pullia. The contract was awarded to the KPIL-Gulermak JV in December 2023, valued at Rs. 762.50 crore, with a completion timeline of 30 months.
Challenges and Adaptations Originally, a new TBM (S-1409A) was planned for deployment, but export restrictions from China led to a change. Instead, KPIL- public transportation infrastructure, ensuring smoother urban connectivity and Gulermak acquired TBMs ‘Tunga’ and ‘Bhadra’ from ITD Cementation, repurposing them for this project.
Future Outlook Following the deployment of TBMs ‘Gomati’ and ‘Saraswati’ for this package, the successful operation of TBM ‘Parvati’ marks steady progress. This initiative is a crucial step toward enhancing Kanpur’s public transportation infrastructure, ensuring smoother urban connectivity and reduced traffic congestion.
CRISIL has upgraded the credit rating of DLF Cyber City Developers Limited (DCCDL) to AAA (Stable), reflecting the company’s robust financial position and strong operational performance. The rating upgrade highlights DCCDL’s consistent revenue growth, high occupancy levels, and sound liquidity profile.
Factors Behind the Upgrade The AAA (Stable) rating is attributed to DCCDL’s steady rental income from its high-quality commercial properties, particularly in prime locations such as Gurugram, Chennai, a well-diversified tenant base, including major multinational corporations, which provides revenue stability. Additionally, financial management, strong cash flows, and reduced debt levels.
Financial Performance and Growth Prospects DCCDL has demonstrated steady revenue growth backed by rising leasing demand in India’s commercial real estate sector. The company’s debt reduction initiatives, coupled with strong collections, have bolstered its financial resilience. Moreover, DCCDL is actively expanding its portfolio through new developments and asset acquisitions, further strengthening its market position.
Market Outlook and Competitive Position India’s commercial real estate market has witnessed increased demand for Grade A office spaces, benefiting players like DCCDL. The company’s strategic asset locations and focus on premium office spaces give it a competitive advantage. CRISIL maintain its strong financial performance while capitalizing on future growth opportunities in the sector.
Conclusion The AAA (Stable) rating upgrade reflects DCCDL’s resilience and growth potential in India’s commercial real estate landscape. With a strong balance sheet, stable rental income, and strategic expansion plans, DCCDL remains well-positioned to sustain its leadership in the sector. CRISIL’s positive confidence in the company’s long-term financial health and operational stability.
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