Realty firm Unitech’s net profit declined 53.3 per cent in the quarter ended June 30, on the back of slow sales, to Rs 45.8 crore from Rs 96.8 crore in the corresponding quarter last year.
The March quarter had also seen a steep fall in net profit, of 97.7 per cent, to Rs 2.3 crore.
The June quarter saw a 33.7 per cent cut in top line, with net sales of Rs 407.7 crore, the lowest in a year. In the first quarter of 2011-12, net sales were Rs 615.5 crore. More recently, in the fourth quarter of 2011-12, net sales were Rs 716.3 crore.
The company did sales bookings of 1.51 million sq ft in Q1 of 2012-13, worth Rs 701 crore, the lowest in seven quarters, and delivered 0.8 million sq ft of developed area. It launched 1.27 million sq ft in the April-June quarter, compared to 3.21 million sq ft in the corresponding quarter last year.
Of the 32 projects launched before March 2009, 10 are yet to be completed or handed over, while 22 are in the finishing or handing over phase. Of the 66 projects launched after March 2009, only eight per cent, or four projects are nearing completion. While 44 per cent of these fell in the category where structure work is complete, eight were yet to start.
Ajay Chandra, managing director, said the focus continued to be on ramping up the construction activity and it was taking several measures to this end.
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Unitech’s costs came down 28 per cent year-on-year during the first quarter to Rs 362.9 crore, down from Rs 504 crore in the corresponding quarter last year. “A lot of emphasis is also being laid on improving various processes to drive efficiencies and reduce costs,” said Chandra.
The average realisation during the quarter, at Rs 4,632 per sq ft, was lower than Rs 5,361 per sq ft in the corresponding quarter last year.
Net debt was Rs 5,399 crore as on March 31, but the company did not disclose the corresponding figure for the quarter ending June.
The result was declared after the market had closed. Earlier, Unitech’s stock had closed at Rs 21.3 per share, about 20p down from yesterday’s close.
Unitech’s Rs 1,607-cr loans come under auditor scrutiny
Realty major Unitech’s short-term loans and advances worth Rs 1,607 crore for purchase of land and projects have come under its auditors’ lens for remaining outstanding for a long period of time, but the company has said it is confident of their recovery.
Making their observation on the matter, the auditors, Goel Garg & Co, said in their report for the last financial year that “considering that some of these advances are outstanding and unadjusted for long periods of time, we are unable to ascertain the recoverability/subsequent adjustments, if any”.
Unitech on Tuesday disclosed the auditors’ comments as part of the notes to the company's financial results for the quarter ended June 30, 2012.
“The management has represented that based on the information available such advances in respect of ongoing business transactions are considered recoverable,” the audit report said.
The auditors said they are "unable to ascertain the final impact, if any", as some of these advances may not be recoverable. "Advances for the purchase of land and projects pending commencement amounting to Rs 16,074,305,962 (Rs 1,607.43 crore) under the head Short Term Loans and advances, as explained by the management, have been given in the normal course of business to land owing companies collaborators/ projects/for purchase of Land," the auditors said. The company said it "took note of the above (auditors' observations), and is of the opinion that advances for purchase of land and projects pending commencement, are considered good for recovery or are recoverable in due course.