Unitech net profit dips 12 percent in second quarter

November 1st, 2008 - 7:16 pm ICT by IANS  

New Delhi, Nov 1 (IANS) Hit by the continuing slump in the realty sector, leading developer Unitech Ltd has posted a 12 percent fall in its net profit in the quarter ended Sep 30 this year over the year-ago period.The company’s net profit fell to Rs.3.59 billion in the quarter from Rs.4.1 billion. Revenues stood at Rs.10 billion as against Rs.10.64 billion a year ago, a company statement said Saturday.

“In an increasingly challenging business environment, the company has been re-orienting its product portfolio towards mid-income housing to boost sales,” Unitech managing director Sanjay Chandra said in the statement.

“Keeping in view the tight liquidity conditions, the company is allocating a higher share of its financial resources for pre-committed projects,” he added.

Unitech shares are now down 90 percent from their record closing price of Rs.538.25 Jan 2 this year. The Realty Index of the Bombay Stock Exchange has shed 84 percent this year.

Earlier this week, the company sold 60 percent stake in its new mobile-phone unit Unitech Wireless to Telenor ASA, the Norway-based telecom giant, for $1.07 billion.

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