Unitech Ltd on Friday posted over 45 per cent fall in net profit for June quarter at Rs 98.3 crore, from Rs 180.04 crore in the year-ago period.

The total income at Rs 667.2 crore for the first quarter ended June, 2011, was 21 per cent lower than the same period previous year. The company said that general inflationary environment, higher input costs and interest rates impacted profits.

Shares of Unitech closed 0.68 per cent lower on the BSE at Rs 29.10. The results came after market hours.

Asked about the year-on-year drop in revenue, Mr R. Nagaraju, Vice-President (Corporate Planning and Strategy) of Unitech, said, “In our business, there is bound to be a variation across quarters, given the method of revenue recognition. Different projects may reach thresholds (for completion and revenue recognition) at different points of time.”

For instance, he said, a project may take a few quarters to reach 20 per cent completion after which revenue to the extent of 20 per cent can be recognised at one go. In the next few quarters, the revenue recognition will take place to the extent of incremental construction, he said arguing that the quarterly showing would hence not be uniform.

The real estate company has a net debt of Rs 5,300 crore. Unitech said it has reduced debt by Rs 204 crore during the quarter from its operating cash flows.

The company said it has been able to achieve sales bookings of over Rs 1,000 crore during the quarter. It launched over 8 million sq.ft of new projects during the calendar year, and delivered 1.60 million sq.ft of completed property during the quarter.

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