Last year in September, Unitech Ltd said it will sell non-core land parcels to reduce debt by 15-20% and improve cash-flows for faster execution of ongoing projects. UCP and Unitech were jointly developing five IT special economic zones (SEZs) and one IT Park in Gurgaon, Noida and Kolkata. In these six projects, UCP held 60% stake and Unitech 40%. That apart, Unitech had direct stake of about 13-14% in UCP.
Unitech has a bank of 5,500 acres in Delhi-NCR, Chennai, Mohali, Kochi, Kolkata, Hyderabad and Bangalore. An earlier media report mentioned that the average cost of acquisition of the land was aground Rs.250 per square feet. This is one of the biggest strengths of the company.
SO NOW TELL ME, WHAT IS THE NET DEBT OF UNITECH LTD? Any idea?
Meanwhile, India's benchmark bond yield ended down 2 basis points at 7.70 percent, as global oil prices remain low which would help keep domestic inflation lower. It means we might see, further cut in the Repo rates in the near future.
In case interest rates fall further, the core real estate business of Unitech Ltd has the potential to grow better. Apart from land sale, the company also plans to monetise some commercial assets.
Moreover, Unitech Ltd has no economic interest in Unitech Wireless. Further, Unitech Ltd has no exposure whatsoever to the Telecom business.