New Delhi: The country’s second-largest developer by market value,Unitech Ltd, reported Friday that its fiscal fourth-quarter net profit declined by more than half in the absence of gains from asset sales that had boosted earnings a year earlier, and outlined fund-raising plans.
Profit fell to Rs360.28 crore in the three months ended 31 March, from Rs747.96 crore in the year-ago period, a 51.83% percent drop. The company’s revenue in the period fell by 26.43% to Rs1,197.13 crore from Rs1,627.29 crore.
Unitech sold six commercial assets, including information technology parks and special economic zones, to its affiliate Unitech Corporate Parks Plc in the fourth quarter of 2007. Those sales contributed Rs1,400 crore of Unitech’s revenue and Rs600 crore of net profit. Unitech does not hold any stake in Unitech Corporate Parks.
For the full year ended 31 March, Unitech’s net profit increased 27% to Rs1,661.86 crore, from Rs1,305.83 crore. Revenue rose 26% to Rs4,280.11 crore from Rs3,388.09 crore.
Unitech plans to raise $1 billion (Rs4,280 crore) over the next year, including $350 million for its hotel business and additional funds for Mumbai projects, managing director Sanjay Chandra said.
The money would be raised through a mix of private equity and funding from its asset management company, Unitech Realty Investors (India) Pvt. Ltd. Chandra said the company planned to roll out its telecom business by the end of this fiscal year with potential foreign partners, whom he didn’t name, for a tie-up. The company is also in talks with three European telecom equipment makers and two Chinese companies for rolling out its network.
The company plans to sell a 26% stake in its telecom arm, Unitech Wireless, to a strategic foreign partner, Chandra said, adding it would eventually spin off the unit into a separate company. To fund the telecom operations, it is considering raising as much as Rs8,000 crore of debt in the next five years, he said.
PTI contributed to this story.