After DLF, HDIL log poor Q3 profits, real estate stocks tank; BSE Realty index falls 3.5%

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Mumbai | Published: February 16, 2017 4:43:24 AM

The S&P BSE Realty index fell by more than 3.5% on Wednesday after DLF and HDIL, which together constitute nearly 40% of the index, reported a big decline in their net profits for the quarter ended December 2016.

The S&P BSE Realty index fell by more than 3.5% on Wednesday after DLF and HDIL, which together constitute nearly 40% of the index, reported a big decline in their net profits for the quarter ended December 2016. (Reuters)The S&P BSE Realty index fell by more than 3.5% on Wednesday after DLF and HDIL, which together constitute nearly 40% of the index, reported a big decline in their net profits for the quarter ended December 2016. (Reuters)

The S&P BSE Realty index fell by more than 3.5% on Wednesday after DLF and HDIL, which together constitute nearly 40% of the index, reported a big decline in their net profits for the quarter ended December 2016.

All the constituents of the index, barring two, lost value of anywhere between 0.405 and 7%. Leading the pack was DLF whose stock fell 6.98% and closed the session at Rs 137.20.

The DLF, which is the single biggest constituent of the index, reported a 46% decline in its consolidated net profit at R98.14 crore for the quarter ended December 2016, on lower sales and higher finance cost. Its net profit for the same period last year stood at R182.11 crore. The results were announced post market hours.

Similarly, HDIL reported 84% decline in its consolidated net profit at Rs 16.22 crore for the quarter ended December.

HDIL posted a net profit of R100.32 crore during the same period a year ago. HDIL’s stock price fell 6.86% and closed the session at Rs 63.80.Realty stocks fell after the demonetisation but it pared its losses after the government announced various sops to the sector.

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