Unitech sales bookings fall by 53% in H1 FY14 due to slowdown

Realty major Unitech Ltd's sales bookings have dropped by 53% during first six months of this fiscal at Rs 717 crore due to slowdown in the property market.

It had sold properties worth Rs 1,537 crore in the first six months of last financial year.

Sales bookings have fallen despite increase in the average price realisation.

"Rs 717 crore of sales bookings achieved during first two quarters of FY 2013-14," Unitech said in operational update.

In terms of volume, Unitech sold 1.05 million sq ft of area during April-September period of 2013-14 against 3.06 million sq ft in the corresponding period of last fiscal.

Average price realisation stood at Rs 6,830 per sq ft during the first half of this fiscal against Rs 5,027 per sq ft in the year-ago period.

Realty sector is facing a slowdown in sales mainly due to high interest rate on home loans and rising property cost.

Out of total sales bookings of Rs 717 crore, the housing segment contributed Rs 510 crore, while the non-residential vertical accounted for Rs 207 crore.

Unitech launched only 0.32 million sq ft of properties during April-September 2013 against 2.91 million sq ft in the year-ago period, the presentation said.

The company has presence in Gurgaon, Noida, Greater Noida, Kolkatta and Chennai.

Unitech said 1.6 million sq ft of area delivered during the first two quarters if this fiscal. "Handing over is in progress in 23 projects out of 32 launched before March 2009. Projects launched since March 2009, handing over started in 9 projects," the presentation said.

Last week, Unitech reported 48% decline in the consolidated net profit at Rs 25.57 crore for second quarter ended September 30 due to higher expenses on construction activities. It had posted a net profit of Rs 49.19 crore in the year-ago period.

Net sales rose by 10% to Rs 595.75 crore during July-September period of the 2013-14 fiscal against Rs 539.82 crore in the corresponding period of the previous year.