Realty major Unitech Ltd has reported a significant decline in sales during the first half of the current fiscal. The company's sales have dropped by 50% to Rs 750 crore, largely influenced by the global slowdown in the property market.
In the first six months of the last fiscal, Unitech had sold properties worth Rs 1,550 crore, a figure notably higher than the current year's sales. This decrease occurred despite an increase in average selling prices.
Sales Volume Decline:
- This fiscal (April-September): 1.10 million sq ft
- Last fiscal (April-September): 3.10 million sq ft
Average Price Understanding:
- This fiscal: Rs 6,830 per sq ft
- Last fiscal: Rs 5,035 per sq ft
New Launches:
- This fiscal: 0.55 million sq ft
- Last fiscal: 2.95 million sq ft
The real estate sector is experiencing a global slowdown in sales, primarily due to high-interest rates on home loans and escalating property costs.
Sales Contribution:
- Residential: Rs 550 crore
- Non-residential: Rs 200 crore
The firm delivered 1.8 million sq ft during the first two quarters and is in the process of completing 23 projects out of the 32 launched before March 2009.
Last week, Unitech reported a 48% decline in net profit to Rs 26 crore for the second quarter, attributed to higher expenses. The firm had shown a profit of Rs 50 crore a year ago. Net sales rose by 12% to Rs 600 crore compared to Rs 540 crore in the previous year.
Unitech maintains a strong presence across various parts of the country.