Unitech profit zooms to Rs 452 cr

BS 200 SCORECARD

Real estate developer Unitech recorded a net profit of Rs 452.38 crore for the quarter ended December 2006, registering a whopping increase of 3,190.04 per cent from the corresponding period last year.

"A major reason for the the growth is the revenues from the projects in Gurgaon and Greater Noida, which are now 20 per cent complete. The sale might have been made in previous quarters, but the revenue is booked only on completion of 20 per cent of the projects. We have also handed over the possession of nearly 1,000 residential units this quarter. That has also helped register such high quarters," Sanjay Chandra, managing director, Unitech.

Interestingly, Unitech's net profit from the quarter ended December 2006 is 549.5 per cent higher than the net profit of the 2006-07 fiscal year. Net profit has also increased by 351 per cent from the previous quarter.

In the quarter ended December 2006, Unitech had raised 360 million pounds, ($720 million) by listing the fund Unitech Corporate Parks Plc on the London Alternative Investment Market for investment in six ITTES parks in India.

"The listing has had no impact on the quarterly results. The impact will begin from the next quarter and will carry on for seven years after that. This has been our foray into asset management and once REITS (real estate investment trusts) are allowed, we will have a head start," said Chandra.

Providing some hints to the company's future strategies, Chandra said, "The National capital region accounts for 95 per cent of our present revenues and 20 per cent of our land bank. Starting from the next quarter itself, other markets, especially Kolkata, will become a significant contributor to our revenues. In a few years, our revenues from the NCR will be 20 per cent."

According to the company's valuation dated September 2006, Unitech owns 10,332 acres. Since then it has added more than 500 acres in southern Maharashtra on the outskirts of Goa-marking the company's foray to the west.

Unitech had acquired this land from private parties for an undisclosed sum. Without sharing any details, Chandra said this would be "an excellent development".

In addition to its disclosed land bank, Unitech was awarded a contract to develop an amusement park on 73 acres in Chandigargh and has been allotted 232 acres in Siliguri.

Curtrently, the company is developing 65 million square feet between the NCR and Kolkata. The company is planning to develop 550 million square feet of residential, office and retail space.

The company's total income for the quarter ended December 2006 increased by 475.68 per cent to Rs 1,016.59 as against Rs 176.59 crore in the same period last year.

For the nine months ended December 2006, the net company's net profit has surged by 1,732 per cent to Rs 626.47 crore, as compared to Rs 34.19 crore in the corresponding period last year. Total income for the nine months ended December 2006 increased by 277.63 per cent to Rs 1715.49 crore as against Rs 454.28 crore in the same period in 2005.