Unitech Ltd, the second largest real estate firm after DLF, reported a 15.91 per cent fall in net profits to Rs 567.25 crore for the year ended March 2011 even as its total income increased 9.18 per cent to Rs 3292.12 crore, Unitech revealed in its consolidate results for FY11.
Unitech did not disclose results for the fourth quarter ended 2011. But a back-of-the-envelope calculation based on unaudited numbers for nine months ended December 2010 and 2009, reveals that Unitech’s net profits in fourth quarter of 2010-11 fell 37.27 per cent to Rs 102.5 crore against Rs 163.41 crore for the same period last year.
The Unitech stock closed at Rs 33.05 on Friday on the Bombay Stock Exchange, close to its 52-week low of Rs 30.65. The arrest of Unitech MD Sanjay Chandra, a director in Unitech group promoted Uninor Wireless in the 2G scam, is also weighing on its stock.
Company’s debt, net of cash, reduced by Rs 228 crore during the year, Unitech said in a statement; net debt to equity ratio of 0.46 and net worth of Rs 11,614 crore.
Ajay Chandra, MD, Unitech Ltd. said, ‘‘Company’s focus remains firmly on monetisation of its geographically diversified land bank through rapid launch and execution of projects, mostly in the mid-income and affordable housing segments.
In keeping with its goal, as announced earlier, of launching 10 million sq ft of projects; company has launched over 6 million sq ft since January 2011 spread across 16 projects.
Apart from continuing to launch projects in existing cities, company entered some new cities such as Ambala, Rewari & Dehradun.”
During the year 2010-11, 177,500,000 warrants, out of the 227,500,000 warrants issued in June 2009 which were convertible into equity shares of Rs 2 each at a premium of Rs 48.75 within in 18 months from the date of issue, were converted into the equal number of equity shares on receipt of balance 75 per cent of the issue price.
Tata Comm posts loss of Rs 854 crore
Tata Communications today reported a consolidated net loss of Rs 854 crore for the year 2010-11.
Its revenues however increased by eight per cent to Rs 11,932 crore from Rs 11,026 crore last year.
The company said its 49 per cent holding in Neotel South Africa, posted a loss of Rs 551 crore, which showed up in the consolidated figures. Tata Communications acquired Neotel, the second largest telecommunications network operator in 2008.
The company’s operating profit or EBITDA was up 21 per cent to Rs 1,226 crore for 2010-11, as compared to Rs 1,012 crore for the previous year. The board of directors recommended a 20 per cent dividend to be paid this year.
“Over the past few years, we have focused our investments on building and strengthening our global assets, services and capabilities which has impacted profitability. Our focus now is to put the business on a firm path to profitability, driven by growth in our enterprise business, growth in new segments like cloud computing and a sharp focus on costs,” said Vinod Kumar, managing director of Tata Communications.
In 2010-11, Tata Communications clinched a partnership with Google to bring on-the-go business connectivity to enterprises in India, along with opening a data centre in Singapore.
The company also announced the international launch of InstaCompute, its cloud infrastructure and application services offering. It also signed an international voice sourcing agreement with Videotron, one of Canada’s largest communications companies.
