Unitech - March 2013 Results Preview - Motilal Oswal

- Expect revenue booking to improve: We estimate revenue at INR6.8b (up 1.4% YoY), EBITDA at INR1.25b and PAT at INR918m. EBITDA margin would expand 1.2pp QoQ to 18.4%.

- New launches subdued: Focus on new launches has been low (as guided by the management earlier) to prioritize execution of ongoing projects. We expect sales run rate to remain stable, led by Noida projects. The company plans to resume new launches in Gurgaon from 1QFY14.

- Execution run rate contingent on liquidity improvement: Major portion of the FY13 repayment obligation has been re-financed. We expect steady uptick in execution in each quarter. Unitech plans to increase on-field workforce from the current 21k to 25k by March 2013 and to 30k by December 2013.

- Valuation and view: Unitech trades at 58% discount to its one-year forward NAV of INR58/share, and at 11.2x FY15E EPS of INR2 and 0.4x FY15E BV of INR49.5. Maintain Buy.

Source : Equity Bulls

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