Unitech Ltd has posted a 47 per cent fall in consolidated net profit for the three months ended September 2011, hurt by higher real estate and construction expenses and employee costs.
The net profit stood at Rs 92.5 crore for September quarter compared with Rs 173.8 crore in year ago period.
On Tuesday, the company's stock was trading lower by 1.36 per cent at Rs 25.35 on the BSE at 11.20 a.m.
In a statement, Unitech said its debt reduced by Rs 191 crore during the quarter. As of September 30, the company had a consolidated net debt of Rs 5,144 crore. During the first half of the current financial year (April-September), the company has reduced its debt to the tune of Rs 394.7 crore.
The total income fell by a marginal 1.3 per cent to Rs 666.4 crore.
The Unitech Managing Director, Mr Ajay Chandra, said that the business environment for the real estate sector continues to be challenging. “Apart from continuing with the strategy of offering products targeted at affordable and mid-income housing segments, the company has been taking various measures to not only deal with the current situation but also position itself to benefit once the business environment starts improving,” he said, but did not elaborate on the specific measures undertaken.
The total area of projects launched during the current calendar year exceeds the original target of 10 million square feet, he added.