Shares of Sunteck Realty soared as much as 8 per cent in the early trade on Thursday after it reported around 9-fold rise in consolidated net profit figures at Rs 60.12 crore for the quarter ended June 30, 2016 against Rs 6.95 crore in the corresponding quarter a year ago. On a standalone basis, the company reported a net profit of Rs 71.75 crore for the quarter under review against net loss of Rs 0.81 crore in the same quarter a year ago.
At 9.25 am, shares of the company were trading 7.43 per cent up at Rs 273.35. The scrip opened the day at Rs 271 and has touched a high and low of Rs 275 and Rs 266.10, respectively, in trade so far. The scrip later closed 2.79 per cent up at Rs 261.55.
Consolidated total income from operation of Sunteck Realty also advanced by nearly 10 times to Rs 524.53 crore for the quarter ended June 30, 2016 against Rs 53.38 crore in the same quarter last year. On a standalone basis, total income from operations of the company jumped to Rs 68.59 crore from Rs 18.57 crore during the same period.
Kamal Khetan, chairman and managing director, Sunteck Realty in a release said, “Multiple policy changes and initiatives like RERA by the government have ensured that the real estate business is instutionalised. The fundamentals of Indian real estate sector remains strong with an advantage for reputed brands. This financial year marks adoption of percentage completion method by Sunteck. The company has started booking profits from our third project in BKC – Signia Pearl this quarter under the new accounting policy. Our operational performance has shown a remarkable growth with higher sales and collections. With the market sentiments looking positive for established real estate brands and for projects nearing completion, we look forward to sustaining this strong performance for the rest of this year.”