New Delhi: Realty firm Unitech on Saturday reported a 47 percent fall in consolidated net profit in the second quarter, even as it decided to invest a further Rs 700-800 crore by March, 2013 on its projects.
Unitech posted Rs 49.19 crore net profit for the quarter ended September 30 this year as against Rs 92.46 crore in the same period last year.
The net income during the second quarter also went down by 21 percent to Rs 539.83 crore from Rs 679.35 crore in the year-ago period.
Commenting on the numbers, Unitech Managing Director Sanjay Chandra said that the company's exit from the telecom operations will have a positive impact on the realty venture with increased focus by the management on its core business.
"Agreement reached recently with Telenor to amicable settle all disputes with respect to Unitech Wireless has had a salubrious effect on the company... This should further boost company's performance," he added.
Talking about the future plans, Unitech Vice-President (Corporate Planning) Routhu Nagaraju said the company will continue to ramp up investment on construction activities in the coming quarters.
"In the remaining part of the fiscal, we will invest Rs 700-800 crore compared to Rs 500-600 crore we have put in so far since April this year," he added.
When asked about the source of funding this amount, Nagaraju said it will be done through internal accruals, cash flows from customers and debt.
As on September 30, Unitech's consolidated net debt stood at Rs 5,566 crore and its net debt to equity ratio was 0.47:1.
"With increased focus on construction activities, we will engage more people on our sites. The number of people, employed by the contractors, will increase to about 25,000 by the end of this fiscal from 20,000 currently," Nagaraju said.
At present, the company is developing 99 projects across different parts of the country and plans to launch a few more in the next few months, he said, but did not share details.
During the second quarter of this fiscal, the company received sales bookings of 1.55 million sq ft, worth Rs 836 crore, up 19.26 percent from the first quarter of 2012-13.
"Average price realisation also increased by about 17 percent to Rs 5,413 per sq ft as compared to the previous quarter due to a better product mix and overall uptick in prices," Chandra said.
Talking about its recently aborted telecom joint venture with Norwegian firm Telenor, Unitech said it has investments and such related obligations to the tune of Rs 964.98 crore.
The Indian entity will, however, transfer all investments to a Telenor nominated entity for a "nominal amount".
Last month, Unitech had announced to exit from the telecom joint venture with Telenor by selling its entire 32.75 percent stake to the erstwhile foreign partner.
First Published: Saturday, November 10, 2012, 15:48