Unitech Q3 net dips 50%, debt down by Rs 384 cr

Realty major Unitech today reported 50% dip in consolidated net profit at Rs 55.22 crore for the third quarter ended December, on account of lower sales.

The company had posted net profit of Rs 111.36 crore in the October-December quarter of 2010-11 fiscal.

Its Q3 net sales fell 22% at Rs 513.90 crore, as against Rs 659.79 crore Q3, 2010-11.

Unitech said its net debt reduced by Rs 383.59 crore in the first nine months of the current fiscal, 2011-12 and stood at Rs 5,190.26 crore as on December 31, 2011.

"Business environment remained challenging during the quarter affecting company's ability to scale up the construction activity," Unitech Managing Director Ajay Chandra said in a statement.

The company said it has a healthy balance sheet with a net debt to equity ratio of 0.43 as of December 31, 2011.

"The net debt to equity at 0.43 is well within the targeted level of 0.50. We have been continuously reducing debt by utilising cash flows from operations," Chandra said.

Unitech has achieved a sales booking of Rs 941 crore during the quarter by continuing its focus on affordable/mid- income housing segments.

In the first nine months of the current fiscal, Unitech sold 5.4 million sq ft for a sales value of Rs 3,029 crore. It launched projects totalling 7.17 million sq ft.