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Unitech to invest Rs 600 cr on hotels

Unitech Ltd, which has also forayed into hospitality sector, plans to invest Rs 600 crore in next two years on its hotel business.

india Updated: Jun 30, 2006 17:42 IST

Real estate company Unitech Ltd, which has also forayed into hospitality sector, plans to invest Rs 600 crore in next two years on its hotel business.

"We are starting to build hotels. This fiscal we will have four hotels, two at Gurgaon and one each in Noida and Kolkata. We will be investing Rs 600 crore for construction work," Unitech Managing Director Sanjay Chandra said.

The company today posted a 152 per cent increase in its consolidated net profit at Rs 87.65 crore and 44 per cent rise in turnover at Rs 954.5 crore in 2005-06. It has entered into an agreement with Marriott, which will manage the hotels.

"We have already acquired land for the hotels and all four projects would get completed in next two years," Chandra said, adding that investment would be funded through internal accruals and debts.

On special economic zones, Chandra said the government has cleared the Haryana SEZ, which would be constructed in 20,000 acres in two phases.

He did not disclose the investment to be made by the company in SEZ. "The business plan is still being worked out," Chandra said.

When asked about the maga-residential project 'Express City' at Noida, he said the company has already paid the first instalments of Rs 1,583 crore, the price at which it bagged the 340-acre land and within six months it would start selling the apartments.

"We plan to build 4,000 apartments targeting the high-end customers. The investments to be made in this project will be 3,000 crore in next three-four years," Chandra said.

The company, which is currently developing 25 million square feet of area to be completed over next two years, has plans to launch new project every 40-days. MORE

For the year 2005-06, Unitech recorded a 133 per cent increase in it net profit at Rs 69.65 crore against Rs 29.91 crore in the year-ago period.

The company's revenue rose by 28 per cent at Rs 674.75 crore compared to Rs 527.18 crore in the previous year.

"The realisation in real estate business has improved. However, the cost has remained constant due to economies of scale we operate in," Chandra said, commenting on the results.

The consolidated net profit rose by 152 per cent at Rs 87.65 crore in 2005-06 as compared to Rs 34.8 crore last year.

It's consolidated revenue during the period under review rose by 44 per cent to Rs 954.5 crore against Rs 664.90 crore in the previous year.

The board of directors also recommended a dividend of 10 per cent on the expanded share capital, translating into Rs 0.2 per share for every Rs 2 paid up share.

Unitech's closing price at Bombay Stock Exchange stood at about Rs 227, up by 5 per cent.