Unitech

At end of Q1FY13, the company had a debt of Rs.5399 crore and this was after it had managed to bring down debt by Rs.325 crore in FY12. Now, at the end of Q2FY13, the debt stands higher by 3% sequentially or gone up Rs.167 crore to Rs.5566 crore. But surprisingly, its interest outgo has come down substantially at Rs.9 crore in current Q2 compared to Rs.12 crore in Q1FY13 and Rs.34 crore in Q2FY12.  Thus debt continues to haunt the company and most others in the realty sector who sought to grow much faster than the market and leveraged their balance sheets to the hilt. These companies are now being punished by the market for getting over ambitious. DLF has a debt of Rs.22,700 crore, the highest in the sector.

On the performance front, YoY, the picture still looks bad with a 20% drop in consolidated net revenue at Rs.540 crore and 47% drop in net profit at Rs.49 crore. Sequentially, topline has risen 32% and bottomline by 6%. During the quarter the company sold 1.55 million sq.feet compared to 1.51 million sq.feet in Q1FY13 and this was valued in current Q2 at Rs.836 crore, up from Rs.701 crore (QoQ). Its average price realization increased by around 17% at Rs.5413/sq ft. In H2FY13, it plans to invest another Rs.700-800 crore to ramp up investment on construction activities. The company hopes to fund this with internal accruals – it has reserves of Rs.11,500 crore and cash at hand stands at Rs.310 crore.