Corporate Results
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Real Estate & Construction
Unitech Ltd net profit up 16% in Q1
Our Bureau
New Delhi, July 30 Real estate company Unitech Ltd on Wednesday posted nearly 16 per cent year-on-year rise in consolidated net profit for the first quarter ended June 2008, to Rs 423.31 crore, as an “aged” land bank acquired at relatively cheaper cost allowed a better play on margins.
“We have an advantage on our aged land bank. The land bank was acquired relatively cheaper and is much more valuable now. Moreover, the land bank is fairly large. Another factor going in our favour is that customers are ready to pay a premium on Unitech property,” Mr Sanjay Chandra, Managing Director of Unitech Ltd, told reporters here.
Unitech’s overall land bank is close to 18,000 acres, with the economic interest pegged at 14,000 acres. The ‘saleable’ area stands at about 800 million sq ft. “Going forward we will only acquire land in select pockets. For instance, we are active in Mumbai. We are also acquiring 1-2 parcels in Noida,” he added.
Exhibiting strong growth at a time when the realty market is in midst of a downturn, the company’s total income on consolidated basis surged 17 per cent to Rs 1,054.4 crore. Asked about the correction in property prices in the realty market, Mr Chandra said, “I feel that some Tier II cities will face an issue.
These are smaller cities where builders have sold properties without end user demand, although futuristically these locations also have a potential. The real growth will happen in suburban areas of major cities,” he pointed out.
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