Unitech Q1 profit plummets 91 pc on losses in telecom biz

Tags: News
Realty firm Unitech today reported 91 per cent decline in its consolidated net profit at Rs 5.56 crore for the quarter ended June as the company booked losses of nearly Rs 1,000 crore in erstwhile telecom business.

Its net profit stood at Rs 62.89 crore in the year ago period, Unitech said in a statement.

Total income from operations jumped more than two fold to Rs 1,522.12 crore in the first quarter of this fiscal against Rs 572.57 crore in the corresponding period of previous year.

"During the quarter, an extraordinary loss of Rs 990.73 crores arising due to wireless business was booked. Net profit for the quarter, therefore, was Rs. 5.56 crore," Unitech said, explaining reason behind sharp fall in net profit.

However, profit after tax from ordinary activities during April-June quarter increased to Rs 991.47 crore compared with Rs 57.31 crore in the same period of previous fiscal.

During the first quarter, the company extinguished its liabilities and obligations related to wireless business to the tune of Rs 1,094.74 crore. "Going forward, the company shall have no liability in this regard".

In October 2012, Unitech had announced exit from the telecom joint venture with Telenor by selling its entire 32.75 per cent stake to the Norwegian firm.

Commenting on the results, Unitech MD Sanjay Chandra said: "There has been a significant (nearly 20 per cent) reduction in debt and other liabilities during the quarter due to the previously announced transaction related to transfer of interest in four IT SEZs".

"This transaction also boosted the income and profit for the quarter. The higher profit has got offset by the extraordinary loss on account of wireless business, booked during the quarter," he added.

Unitech's consolidated net debt reduced by Rs 407 crore during the quarter to Rs 5,908 crore. Net debt to equity ratio as of 30th June’14 was 0.54.

In June, Unitech had sold its 40 per cent stake each in four IT SEZ projects for over Rs 1,300 crore to Canada's Brookfield Asset Management.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Skill gaps faced by India’s graduates cannot be filled easily

    India, the third largest economy in the world with regard to purchasing power parity, is expected to overtake China in its working population by 2028.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Purnendu Ghosh

Why we must know the rules of the game

We like to believe that people are good and we ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture