Realty major Unitech Ltd. reported a lower net profit for the fourth-quarter, both on stand-alone and consolidated basis, hurt by higher borrowing costs and slowdown in income.
Thirteen interest rate hikes by the Reserve Bank of India (RBI) between March 2010 and October last to rein in inflation have dealt a severe blow on the country's debt-laden developers. These interest rates pushed up the cost of repayments and deterred potential home-buyers.
The New Delhi-based company reported a fourth-quarter stand-alone net profit of Rs.42.45 crore or Re.0.16 per share, lower by 23 percent than the Rs.64.83 crore or Re.0.34 per share for the quarter ended March 31, 2011. Net profit and earnings per share fell by 35 percent and 53 percent respectively.
Its quarterly net income from operations stood at Rs.273.45 crore, down by 27 percent from the Rs.372.51 crore in the year-ago quarter, while other income was Rs.110.92 crore, up by nine percent from the Rs.101.92 crore in Q4FY11.
For the quarter, income from 'Real Estate' segment amounted to Rs.241.18 crore, compared with Rs.344.30 crore, reflecting a 30 percent drop, while that from 'Consultancy; was Rs.32.27 crore, up by 57 percent from the Rs.20.53 crore in Q4FY11.
Sale bookings during the quarter were higher than the previous quarter in volume terms at 1.79 million sq.ft. In terms of value, sales bookings stood at Rs.779 crore, the company said.
For the fiscal year its stand-alone net profit declined by 36 percent to Rs.327.11 crore, compared with Rs.510.08 crore for the year ended March 31 last year. Total income, including other income, fell by 24 percent to Rs.1,638.60 crore from Rs.2,168.13 crore a year-ago.
On a consolidated basis, its net profit in the fourth-quarter plummeted by 98 percent to Rs.2.26 crore from the Rs.102.50 crore in the corresponding period last year. Total income, including other income, stood at Rs.770.46 crore, down by 30 percent from the Rs.1,095.74 crore in the year-ago quarter.
For the fiscal year, the company posted a net profit of Rs.248.30 crore, lower by 56 percent than the Rs.567.66 crore in 2011. Total income, including other income, declined to Rs.2,651.39 crore from Rs.3,292.12 crore last year, reflecting a 19 percent fall.
During the year, the company achieved sales booking of 7.19 million sq.ft. valued at Rs.3,808 crore, and delivered 3.4 million sq.ft. of completed property. During the next fiscal, it plans to deliver around nine million sq.ft. finished products.
Managing Director Ajay Chandra said, "Financial year 2011-12 was a very challenging year particularly in terms of availability as well as cost of funding for real estate project. This has resulted not only in an increase in financing costs for the company but also adversely affected the construction activity during the year. There has been a gradual improvement in availability of funding in the recent months and the outlook on the interest rates is also benign. We expect the year 2012-13 to be significantly better."
He added, "Company's focus continued to be on ramping up the construction activity at its various project sites. I am pleased to share that we have commenced delivery of finished product in one of our newer markets, Chennai, recently.
Chandra said the "company has a healthy balance sheet and it has been continuously reducing its debt by utilizing cash flows from operations."
At the BSE, Unitech shares are currently trading at Rs.19.50, down Re.0.45 or 2.26 percent on a volume of around 11,20,000 shares.
by RTT Staff Writer
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