DB Realty did not launch any new projects in the September quarter. It sold about 50-75% of its seven ongoing projects. The company’s net sales for the first half ended September dropped by 36%. Net profit plunged by 76% in the same period. The firm reduced its debt from Rs 600 crore a year ago to Rs 230 crore by selling non-core assets. It holds a large pile of transfer of development rights (TDR) that could boost cash flow. But the ongoing 2G scam case involving its promoters is casting a shadow on its Mumbai projects. Unitech, another major real estate player, faces similar problems due to top leaders’ alleged 2G scam involvement. Its net sales and profits dropped 17% and 45% in the first half of the fiscal year. Shareholders protested at its annual meeting by blocking a dividend payout for 2011. Despite challenges, Unitech’s business model remains strong. It focuses on affordable and mid-income housing, helping it generate cash flow. The company is still launching new projects but at a slow pace. It reduced debt using internal cash, now standing at Rs 5,144 crore. It holds nearly 7,000 acres of land, costing around Rs 250 per square foot. Analysts say that although fundamentals remain solid, the 2G scam issues and loss of trust will limit any stock rise. Both companies’ stocks trade at big discounts compared to their land values, estimated at Rs 60 per square foot.