Unitech's net profit dips 48% on higher expenses

The company had posted a net profit of Rs 49.19 crore for the same quarter in the previous year

Real estate firm Unitech posted 48 per cent decline in its net profit at Rs 26 crore for the second quarter ended September on higher expenses. It’s net profit for the corresponding period last year was Rs 49 crore.

The realtor had achieved sales booking of 1.05 million sqft at an average realisation of Rs 6,830 a sq ft during the quarter. While the firm recorded residential sales booking of 0.92 million sq ft for Rs 510 crore, non-residential sales booking was for 0.13 million sq ft at Rs 207 crore.

The company also delivered 1.61 million sq ft of completed area during the quarter. The net debt as of September 30 stood at Rs 6,240  crore. The cost of material consumed almost doubled to Rs 83 crore from Rs 43 crore during the period.

Sanjay Chandra, managing director, said, “Prevailing challenging macro-economic environment had a strong bearing on the demand for real estate in the company’s key markets during the second quarter. With the onset of the festive season, there has been a gradual improvement in demand and the company has been taking measures to boost sales. The company has recently resumed launch of new residential projects and the initial response has been quite encouraging.”

He said, “We also expect a healthy growth in office space leasing in our projects, leading to an increase in demand for our residential projects in the neighborhood.”

The company’s shares closed at Rs 16.65, up four per cent on the BSE exchange on Thursday.