COMPANY ANALYSIS OF

8/7/2019 COMPANY ANALYSIS OF

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` Unitech Group is a Rs. 1600 crore real estate

developer in India

` Entered the civil engineering sector on 9th

February of the year 1971 as United Technical

Consultants Pvt.

` First real estate developer to have been certified

ISO 90001:2000 certificate in North India


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` It has a market capitalization of around USD 6billion.

` Unitech is one of the most liquid stocks in the

Indian stock market

` Company has over 6, 00,000 shareholders.

` Unitech has built more than 100 residential

projects, 50 commercial properties, hotels,

highways, flyovers, schools, airports, amusement

parks, transmission lines and other heavy

constructions.


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Its business operations comprise of

The construction activities include

construction of highways, roads, hotels,hospitals and various types of other

buildings/ structur6es, in India and abroad.

consultancy and management fee

construction

development of real estate

Real estate development includes

development of mini cities/ townships

construction of residential and commercial

complexes.

Consultancy and management fee include

overseeing of project execution andmarketing of real estate ventures.


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To be Indias leading Real Estate company

with a Pan-India Footprint, and be thecompany of first choice amongst ourcustomers to address their needs across allrealty verticals.


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` The Unitech brand is well recognised in India and

was conferred with the title of Superbrand by

Superbrand India in 2010.

` The Company is the recipient of the CW Architect

and Builders Award, 2008 for being one of India's

Top Ten Builders.


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` Bombay Stock Exchange Ltd. (BSE), (Stock Code:

507878)

` The National Stock Exchange of India Ltd. (NSE),

(Stock Code: UNITECH)


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MANAGEMENT TEAM

Sr.No Name Designation

1 Mr. Ramesh Chandra Chairman / Chair Person

2 Mr. Sanjay Chandra Managing Director

3 Mr. Ajay Chandra Managing Director4 A S Johar Whole-time Director

5 r. j B h ur Director

6r. vi eri h i Director

7 Dr. P K oh t Director

8 s. i oti B hri Director

9 r. G Ambw i Director

10 r. A il H rish Director

13 Goel G r & Co Au itor

12 r. oj Popli Chief Fi ci l Officer

13 r. Deep k J i ecret r & Compl. Officer


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Strengths` Strong brand and customer experience.

` Large scale of operations.

` Diversified portfolio, both in terms of product and

geographies.

` Large land reserve that can be developed in the

future.` Track record of profitability


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Weaknesses

` Business heavily dependent on the performance

of the real estate market in India.

` High debt to equity ratio.` Negative net cash flows from operating and

investing activities for the past three years.


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Opportunities

` Focus on affordable housing, a segment where a

demand-supply mismatch exists.

` The housing investments are expected to grow.

` Entry into the growing Indian telecom market


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Threats

` Intense competition among the peer group to grab

maximum market share

` Global economic slowdown may continue to affect

the business of the company.


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NAME OF THE

COMPETITOR

Jaiprakash Associates

GMR Infratech

Lanco Infratech

Jaypee Infratech

IRB Infratech

ILandFS

Hind Constructions

IVRCL Infrastructures

Nagarjuna Constructions


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Dividend Announcements

Year Dividend (%) Dividend Type

2009 03 Final

2008 03 12. Final

2007 03 2 Final

200 03 10 Final

200 03 40 Final

2004 03 30 Final

2003 03 20 Final

2002 03 20 Final

2001 03 20 Final

2000 03 30 Final

1999 03 40 Final


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Balance Sheet of Unitech

(Rs in Crs)

PARTICULARS YEARABSOLUT

E

%

CHANGE

Mar '08 Mar '09

Sources Of FundsEquity Share Capital 324.68 324.68 0 0

Reserves 1,819.14 2,534.89 715.75 39.35

Networth 2,143.82 2,859.57 715.75 33.39

Secured Loans 5,506.45 5,931.02 424.57 7.71

Unsecured Loans 2,611.08 1,747.98 -863.10 -33.06

Applic tio f nds

Gross Block 132.05 148.63 16.58 12.56

Less: Accum.

Depreciation 35.96 40.79 4.83 13.43

Net Block 96.09 107.84 11.75 12.23

Capital Work in Progress 7,083.41 8,688.46 1605.05 22.66

Investments 1,397.99 1,954.94 556.95 39.84

Inventories 13.66 10.48 -3.18 -23.28

Sundry Debtors 739.74 793 53.26 7.20

Cash and Bank Balance 236.01 69.72 -166.29 -70.46Total Current Assets 989.41 873.2 -116.21 -11.75

Loans and Advances 7,624.58 5,489.72 -2134.86 -28.00

Fixed Deposits 135.17 33.43 -101.74 -75.27

Current Liabilities 6,316.27 6,580.13 263.86 4.18

Total CL & Provisions 7,065.30 6,609.04 -456.26 -6.46

et Current Assets 1,683.86 -212.69 -18 6.55 -112.63

Total Assets 10,261.35 10,538.55 277.2 2.70

Interpretations

The company has

financed its assets

from the long term

loans in both the

years.

The unsecuredloans of the

company hasdecreased by33.06%

Though thesecured loans of

the company hasincreased by7.71% in 2009,but actual totaldebt of the

company hasdecreased by5.40

There has beenincrease in he

debtors from739.74 in 2008 to793 in 2009,because 2009was the year ofeconomic crisis


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RATIOS 2008 2009

Current Ratio 1.28 1.45

Quick Ratio 1.28 1.45

Debt to Equity 4.79 3.69


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COMPAR SON OF L QU D TY RAT OS

0

1

2

3

4

5

6

Current Ratio Quick Ratio Debt Equity Ratio

Ratios

Value 2008

2009

Quick atio

Si ce t e c a as a q ic rati a e . i t t e earst e c a ca eet its li ati s.

Debt to

EquityIncase the ratio is 1 than the outsiders funds are equal toshareholders fund, but in this case the ratio is 4.79 and 3.69 for2008 and 2009 respectively so the extend of companiesdependent on outsiders for funds is more.


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Comparative rofit & Loss account(Rs in Crs)

PARTICULARS YEARABSOL

UTE % CHANGE

Mar ' Mar '

Income

Sales Turnover/Net Sales 2,4 6.7 1,767.24 -719.55 -28.93

Other Income 482.36 686.19 203.83 42.26

Stock Adjustments -19.11 -3.18 15.93 -83.36

Total Income 2,950.04 2,450.25 -499.79 -16.94

Expenditure

Raw Materials 26.46 20.69 -5.77 -21.81

Employee Cost 98.43 106.44 8.01 8.14

Other ManufacturingExpenses 981.25 568.06 -413.19 -42.11

Selling and Admin Expenses 52.7 53.22 0.52 0.99

Miscellaneous Expenses 23.7 11.56 -12.14 -51.22

Total Expenses 1,182.54 759.97 -422.57 -35.73

Operating Profit 1,285.14 1,004.09 -281.05 -21.87

PBDIT 1,767.50 1,690.28 -77.22 -4.37

Interest 393.38 722.12 328.74 83.57

PBDT 1,374.12 968.16 -405.96 -29.54

Depreciation 8.58 10.04 1.46 17.02

ProfitBefore Tax 1,365.54 958.12 -407.42 -29.84

Extra-ordinary items -0.38 0 0.38 -100.00

PBT (Post Extra-ord Items) 1,365.16 958.12 -407.04 -29.82

Tax 334.83 216.98 -117.85 -35.20

T tal al e iti 1,1 6. 9 39.29 - 1 .80 -3 .05

Equity Divi e 4 . 8 2 .44 -20.1 - 9. 3

Interpretations

There has been adecrease in the netsales by 28.93%while the total

expenses decreasedby 35.75%, therebyresulting in decreasein the gross profit by29.84%.

Total revenue of thecompany decreasedfrom 2008 to 2009, dueto a sharp fall in revenue

from the construction,real estate, andconsultancy segments.But still there was anincrease in revenue fromother incomes for thecompany.

The profitability of

the company has

decreased in 2009

because due to a

decrease in income

from sales and

operations.

Net profit has

primarily due to

poor operating

performance.


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RATIOS 2008 2009

Earnings Per Share 6.35 4.56

Operating Profit Per Share (Rs) 7.92 6.18

Price Earning (P/E) 43.76 7.72

PROFITABILITY RATTOS

0

10

2030

40

50

Price Earning (P/E) Earnings Per Share Operating Profit Per

Share (Rs)

Ratios

Valu 2008

2009


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Anin estorshouldin estin Unitech mainlydueto

followingreasons:

` Ability to identify new projects and successfully

implement existing projects` Track record of profitability and a successful

business model

` Strong relationships with leading financial

institutions, contractors and consultants

` Well-recognised brand name

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