The Hindu Business Line : Demand slowdown drags down Unitech net

Real estate company Unitech Ltd has posted nearly 63 per cent fall in its consolidated net profit for the first quarter ended June 2009, at Rs 158 crore.

The slowdown in demand for real estate coupled with the shift in focus towards low and middle-income housing led to the drop in profits on a year-on-year basis.

The total income during the quarter stood at Rs 548.22 crore, 48 per cent lower than the year-ago period.

“During the quarter, the company continued with its strategy of focusing on affordable housing. The company till date has launched approximately 17 million sq. ft, mostly in this segment, and it has sold nearly seven million sq. ft. in different cities. Unitech is well on its course to achieve the targeted launch of 30 million sq. ft of projects during the current financial year,” said Mr Sanjay Chandra, Managing Director, Unitech Ltd.

During the quarter, the company had outlined plans to launch projects with units starting at Rs 10 lakh under the brand UniHomes. The company had reserves and surplus of Rs 6,409 crore as of June 2009. Total loan outstanding was Rs 8,262 crore, at the end of the quarter, and less than Rs 7,000 crore by July end. It had Rs 625 crore in cash and bank balance as of June 30. At the end of the quarter, 37.05 per cent promoter holding was pledged.

Unitech had recently raised $900 million through two QIPs.

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