New Delhi: Real estate firm Unitech Ltd said net profit fell 43.64% to Rs675.05 crore in the year ended 31 March, compared with Rs1,196.43 crore in the previous fiscal.
The firm saw a small jump in net sales. For the full year, Unitech’s net sales were Rs2,956.8 crore, up from Rs2,894.4 crore a year ago.
New initiatives: Sanjay Chandra, managing director, Unitech.
Unitech’s Ebitda (earnings before interest, tax, depreciation and amortization) margin, a key measure of operating profitability, rose 37% in 2009-10 from 35% in 2008-09.
“The company has taken various initiatives during the year to reduce construction time and enhance project execution capabilities,” managing director Sanjay Chandra said in a statement. “We delivered 6.8 million sq. ft during the year.”
“The company has not been able to generate enough revenue from the new projects launched during these 12 months,” Samar Sadha, research analyst at local brokerage Anand Rathi Financial Services Ltd, said, explaining the fall in profits. “Also, the profit after tax has gone down because of increased expense primary being construction expense.” Sadha, however, said that the company’s total income was more than expected.
In a recent presentation, Unitech had said it has received bookings for 16.6 million sq. ft of space in the last fiscal. The value of sales booked during 2009-10 was more than Rs7,000 crore, it said.
In the last fiscal, the company’s debt, net of cash and cash equivalents reduced by Rs3,130 crore and was Rs5,281 crore as of 31 March.
Last month, Unitech’s board announced a restructuring exercise, under which it will spin off its infrastructure businesses, including telecommunications, into wholly owned subsidiary Unitech Infra Ltd.
This will include the construction business, amusement parks, hotels, telecom and industrial parks. After the demerger, Unitech shareholders will get an equal number of shares in Unitech Infra, the company said after its board approved the restructuring.