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UNITY INFRAPROJECTS
UNRATED (RS63, MCAP: RS4.7BN / US$103M
• Unity Infraprojects is a fast-growing construction company that has benefited from the large infrastructure
development opportunity in India across sectors, including roads, airports and irrigation.
• Some showcase projects completed by Unity Infraprojects include structural works for Terminal 1B at Mumbai
Airport (as part of modernization of the airport under private developer GVK), and construction of the Major
Dhyanchand National hockey stadium for the recently held Commonwealth Games in New Delhi.
• Unity has order backlog of Rs39.6bn (unadjusted for 3QFY11 revenues) as of January 2011. About 48% of the backlog
consists of civil works, while water (46%) and transportation (6%) constitute the rest. The company received order
inflows of Rs11.44bn in 9MFY11 and is an L1 bidder for Rs3bn worth of orders.
• The company is the highest bidder for a road project in Rajasthan (offered by the state PWD) to be developed on BOT
(toll) basis. The project is a 74km long 2-laning project and is valued at Rs1.5bn. The concession period is 25 years,
including a construction timeline of 2.5 years. The project entails a Rs190m grant from the state government.
• Unity is looking to focus on state highway projects to develop its asset portfolio. Accordingly, it is looking to tie up
with a European company to bid for NHAI projects.
• The management has indicated that the construction business is undergoing a strenuous phase currently due to
following reasons:
o The government apparatus appears to have virtually reached a state of ‘paralysis’. Major project announcements
are not being followed up with sufficient activity that would lead to construction on the ground
o Very few decisions are being taken by the government with regards infrastructure, which has led to a slowdown
in order inflows
o Therefore, lot of construction capacity across the country is lying idle
o Specific regions are facing their own unique set of challenges; e.g., work in Maharashtra, including Mumbai, has
been affected by a ban on sand dredging
o Average interest rates have increased by 1% over the past four months, leading to higher interest costs.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UNITY INFRAPROJECTS
UNRATED (RS63, MCAP: RS4.7BN / US$103M
• Unity Infraprojects is a fast-growing construction company that has benefited from the large infrastructure
development opportunity in India across sectors, including roads, airports and irrigation.
• Some showcase projects completed by Unity Infraprojects include structural works for Terminal 1B at Mumbai
Airport (as part of modernization of the airport under private developer GVK), and construction of the Major
Dhyanchand National hockey stadium for the recently held Commonwealth Games in New Delhi.
• Unity has order backlog of Rs39.6bn (unadjusted for 3QFY11 revenues) as of January 2011. About 48% of the backlog
consists of civil works, while water (46%) and transportation (6%) constitute the rest. The company received order
inflows of Rs11.44bn in 9MFY11 and is an L1 bidder for Rs3bn worth of orders.
• The company is the highest bidder for a road project in Rajasthan (offered by the state PWD) to be developed on BOT
(toll) basis. The project is a 74km long 2-laning project and is valued at Rs1.5bn. The concession period is 25 years,
including a construction timeline of 2.5 years. The project entails a Rs190m grant from the state government.
• Unity is looking to focus on state highway projects to develop its asset portfolio. Accordingly, it is looking to tie up
with a European company to bid for NHAI projects.
• The management has indicated that the construction business is undergoing a strenuous phase currently due to
following reasons:
o The government apparatus appears to have virtually reached a state of ‘paralysis’. Major project announcements
are not being followed up with sufficient activity that would lead to construction on the ground
o Very few decisions are being taken by the government with regards infrastructure, which has led to a slowdown
in order inflows
o Therefore, lot of construction capacity across the country is lying idle
o Specific regions are facing their own unique set of challenges; e.g., work in Maharashtra, including Mumbai, has
been affected by a ban on sand dredging
o Average interest rates have increased by 1% over the past four months, leading to higher interest costs.
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