Unitech drops after reporting weak Q4 results

Unitech dropped 3.52% to Rs 3.84 at 11:45 IST on BSE after the company reported consolidated net loss of Rs 539.46 crore in Q4 March 2016 compared with consolidated net loss of Rs 162.54 crore in Q4 March 2015.

The result was announced after market hours yesterday, 30 May 2016.

Meanwhile, the S&P BSE Sensex was down 78.47 points or 0.3% at 26,647.13.

On BSE, so far 30.61 lakh shares were traded in the counter as against average daily volume of 90.02 lakh shares in the past two weeks. The stock hit a high of Rs 4 and a low of Rs 3.81 so far during the day. The stock had hit a 52-week low of Rs 3.43 on 11 February 2016. The stock had hit a 52-week high of Rs 14.85 on 29 May 2015. The stock had underperformed the market over the past one month till 30 May 2016, sliding 16.03% compared with Sensex's 4.37% gains. The scrip had also underperformed the market in past one quarter, gaining 1.79% as against Sensex's 16.19% gains.

The mid-cap company has equity capital of Rs 523.26 crore. Face value per share is Rs 2.

Unitech's total income fell 51.64% to Rs 511.52 crore in Q4 March 2016 over Q4 March 2015.

At the time of announcement of results, Sanjay Chandra, Managing Director of Unitech said that the company's focus has been primarily on completing the ongoing projects and delivering the finished product to its customers. Balance expected receipts from these ongoing projects combined are sufficient not only to meet the remaining construction expenses but also to service the debt, if any, against these projects. The company has been taking various measures, such as creation of project specific escrow accounts, to boost customer confidence and improve conditions so as to generate liquidity needed for completing the ongoing projects. Apart from improving collections, company is also mobilising funds from banks and financial institutions. With these measures company is hopeful of completing the ongoing projects in the next few quarters in a phased manner, he added.

Unitech is one of India's leading real estate player. It has a diversified product mix in real estate comprising of commercial complexes, IT/ITes parks, special economic zones (SEZs), integrated residential developments, schools, hotels, malls, golf courses and amusement parks.

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