Realty firm Unitech on Wednesday reported 91% 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% stake to the Norwegian firm.
Commenting on the results, Unitech MD Sanjay Chandra said: "There has been a significant (nearly 20%) 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% stake each in four IT SEZ projects for over Rs 1,300 crore to Canada's Brookfield Asset Management.