Unitech’s net crashes 61% on higher expenses, finance cost

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Unitech registered a 61% y-o-y fall in its consolidated net profit to Rs 33 crore for the quarter. Reuters Unitech registered a 61% y-o-y fall in its consolidated net profit to Rs 33 crore for the quarter. Reuters
SummaryUnitech registered a 61% y-o-y fall in its consolidated net profit to Rs 33 crore for the quarter...

Real estate firm Unitech on Friday registered a 61% y-o-y fall in its consolidated net profit to Rs 33 crore for the quarter ended December 31, mainly due to higher expenses and finance cost.

The company's total expenses in the quarter rose nearly 32% to Rs 716 crore y-o-y. The expenses rose on account of a rise of 34% in real estate construction and other expenses to R484 crore, while cost of material rose 18% to R66 crore.

Total income from operations in the period stood at nearly R732 crore, up 13% y-o-y. The company reported an operating profit of R15.9 crore before other income, finance costs and exceptional items. Other income stood at R61.9 crore up from R34.6 crore last year, while finance cost surged more than three times to R28 crore y-o-y.

For the nine months ended December 31, 2013, the company achieved sales bookings of 1.74 million square feet at an average realisation of R6,147 per sqft. Of this, residential sales bookings stood at 1.26 million sq ft valued at R695 crore and non-residential sales bookings of 0.48 million sq ft valued at R376 crore. The total value of sales bookings is R1,071 crore. Unitech delivered 2.36 million sq ft of completed area in this period.

Unitech's net debt at the end of December 31, 2013, stood at R6,299.19 crore up from R6,240 crore in the September 2013 ended quarter. The company maintainted its net debt to equity ratio of 0.54.

Sanjay Chandra, managing director, Unitech said, “The company resumed launch of new projects during the quarter and launched over 4 million sq ft of new projects. These launches helped company achieve a sequential growth of approximately 33% in sales bookings in a sluggish market. Delivery of completed projects also picked up during the quarter and the company delivered 0.76 million sq ft in Q3 as against 0.56 million sq ft in Q2.” Unitech’s scrip closed up 0.64% at R12.66 on BSE on Friday.

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