Unitech posts Rs 16.1 cr loss in Q3 on high interest outgo

Realty firm Unitech Ltd today reported a consolidated net loss of Rs 16.10 crore for the quarter ended December on sharp rise in the finance cost.
The Gurgaon-based developer had posted a net profit of Rs 43.33 crore in the year-ago period.
Income from operations fell to Rs 408.74 crore in the third quarter of this fiscal as against Rs 706.81 crore in the corresponding period of the previous year, Unitech said in a regulatory filing.
Finance cost increased to Rs 84.56 crore in the October- December quarter of this fiscal from Rs 7.33 crore in the year-ago period.
On the standalone basis, the company posted a net profit of Rs 26.74 crore, while total income was Rs 271.12 crore.

Unitech's consolidated net debt as of December 31, 2015 stood at Rs 6,802.05 crore. Net debt to equity ratio was 0.64.

Commenting on the results, Unitech MD Sanjay Chandra said: "In a difficult market environment, company is continuing with its efforts on multiple fronts to improve the cash flow."
Increasing the construction spends at its ongoing projects and delivering the finished product remains the primary objective of the company, he added.
"The company has also made certain organisational changes to give sharper management focus to individual projects. These changes should result in further accelerating the delivery by resolving project specific issues in a focused manner," Chandra said.

The organisational changes have been made as Unitech has been facing consumer complaints and protest in some of its projects due to delay in completion of projects.
On operational front, Unitech achieved a sales bookings of Rs 832 crore in the first nine months of this fiscal and completed 3.03 million sq ft of area.