Sales turnover of the firm slumped 4.81 percent to Rs 86.94 crore in the quarter under review compared to Rs 91.33 crore during the previous quarter ended September 2011.
The Mumbai-based real estate developer's net profit rose inspite of fall in sales because its total expense during the quarter declined to Rs 42.84 crore from Rs 60.65 cr in the corresponding period of last year.
In an official statement, the company said it sold 36,041 sq ft area for Rs 70.7 cr during the September 2012 quarter, which is an increase of 34 percent in value terms over the quarter ending June 2012 when it sold 33,571 sq ft area for Rs 52.7 cr.
On September 1, 2012, the company bought 75.19 percent stake in Mazda Construction Company and in the step down subsidiary Karmik Designs which provides a potential development of around 70,000 sq ft (Orbit's economic interest) in core South Mumbai Market, the company said in the statement.
According to media reports, the company plans to sell stake in four projects in Mumbai and it is holding discussion with some real estate firms in this regard. The projects include three redevelopment projects in central and south Mumbai, and a 17-acre slum rehabilitation project in Santacruz suburb.
The slum rehab project being developed by the firm in Santacruz involves rehabilitation of 2,200 slums spread over 17 acre near Khira Nagar. The company may use the proceeds from the sale, estimated at around 450-500 crore, for reducing its debt which stood at Rs 887 crore at the end of June 2012. Consequently, the company plans to halve its debt-equity ratio to 0.4 times by the end of 2012-13.