Unitech Q2 net profit down 48% at Rs 25.57 cr
New Delhi: Realty firm Unitech on Thursday reported 48 percent fall in 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, Gurgaon-based firm said in a filing to BSE.
However, net sales rose by 10 percent 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.
Net profit fell during the September quarter due to 28 percent rise in total expenditure at Rs 598.02 crore. The cost of material consumed almost doubled to Rs 82.62 crore from Rs 43.16 crore during the period under review.
"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," Unitech Managing Director Sanjay Chandra said in a statement.
"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. Company has recently resumed launch of new residential projects and the initial response has been quite encouraging," he added.
Unitech said it has a healthy balance sheet with a net debt to equity ratio of 0.54. Net debt was Rs 6,240.02 crore as of September 30, 2013.
On operational performance, Unitech said it achieved a sales bookings of Rs 717 crore during the second quarter of this fiscal.
The residential sales bookings stood at 0.92 million sq ft valued at Rs 510 crore, while non-residential sales bookings was 0.13 million sq ft valued at Rs. 207 crore.
"I am particularly pleased with our performance on the commercial office space leasing as well as sales during the quarter. A number of blue chip multinational companies have leased space in our projects," Chandra said.
Stating that demand for office space is a good lead indicator of employment generation and residential demand in that area, he said: "We, therefore, expect the healthy growth in office space leasing in our projects to lead to an increase in demand for our residential projects in the neighbourhood".