Unitech has lowered its gross debt significantly by 40% from over Rs 9,000 crore in March, 2009 to about Rs 5,500 crore now and would further reduce the borrowing in coming quarters from operational cash flows.
Besides gradual reduction in debt, the company would infuse more funds on construction of ongoing projects for fast execution of about 80 projects across the country. It invested Rs 1,300 crore on construction last fiscal.
The company’s debt-equity ratio was in a comfortable position at 0.46% and is very low compared to peer groups. Unitech has cut debt by nearly Rs 400 crore in the first half of this fiscal.
In 2009-10 fiscal, the company had raised about Rs 4,500 crore from qualified institutional placement of equity shares, out of which about Rs 2,200 crore was utilised to cut debt.
