The Hindu Business Line : Unitech Q4 net down 50%

New Delhi, June 27 Unitech Ltd on Friday posted almost 52-per cent drop in consolidated net profit for the fourth quarter ended March 2008 to Rs 360.2 crore, primarily as sale of four commercial assets to Unitech Corporate Park (UCP) had boosted profits in the year-ago period.

India’s second largest real estate firm – currently in midst of a massive diversification – further announced its plans to dilute 26 per cent stake in its telecom arm to a yet-to-be-identified strategic foreign partner.

The company also said it would raise about $1 billion from private equity to fund its hospitality venture as well as commercial projects in Mumbai over the coming one year.

Unitech’s net profit was pegged at Rs 747.9 crore in Q4 of FY07, when sale to UCP had contributed significantly to its bottomline. “In 2006-07, Unitech had sold assets to UCP resulting in Rs 1,400 crore in sales proceeds, and about Rs 600 crore in terms of net profit,” Mr Sanjay Chandra, Managing Director, said at a conference here.

Unitech’s consolidated net sales declined 27 per cent to Rs 1,160 crore for the quarter ended March 2008, compared to Rs 1,591.3 crore a year earlier.

For the full year FY08, however, the consolidated net profit rose over 27 per to touch Rs 1661.86 crore from Rs 1305.83 crore in FY07. Net sales soared 26 per cent to Rs 4140.4 crore from Rs 3288.3 crore in the year ended March 2007.

“Our EBITDA margins are holding at 55 per cent for the fiscal, almost the same as last year but for the fourth quarter it was in the 40s range due to the current mix of projects,” the official said.

Unitech’s hospitality blueprint entails 35 hotels, of which 15 will be built in the first phase. Unitech is looking at to raise $350 million via private equity in the current fiscal year for the 15 hotels, Mr Chandra sadi. The company is also in talks with PEs for funding 3-4 commercial projects in Mumbai; the company, last week, had announced that Lehman Brothers Real Estate Partners would invest about $175 million for a 50 per cent stake in its Mumbai Santa Cruz project.

Unitech also plans to list amusement parks business in the next two years, Mr Chandra added.

The scrip declined 1.61 per cent to Rs 182.80 on the BSE.

Related Stories:
Lehman Brothers to pump in Rs 740 cr in Unitech realty project
Unitech looks to ‘monetise’ upcoming hotel biz

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page