Sunteck Realty surges 15% post Q2 results

The stock surged 15% to Rs 240 after the company posted profit of Rs 96 cr in Q2FY17 against Rs 15 cr in Q2FY16.

Sunteck Realty has surged 15% to Rs 240 on the BSE in intra-day trade after the company reported a consolidated net profit of Rs 96 crore for the quarter ended September 30, 2016 (Q2FY17), due to higher sales and other comprehensive income. The real estate developer had profit of Rs 15 crore in the same quarter last fiscal.

Total income from operations rose nearly seven-fold to Rs 206 crore during the quarter under review against Rs 30 crore in the corresponding quarter of previous year. Operating margin expanded to 61% in Q2FY17 from 33% in Q2FY16, Sunteck Realty said in a press release.

“Our prudent cash flow management practices along with financial discipline have enabled us to strengthen the balance sheet further,” said Kamal Khetan, chairman and managing director, Sunteck Realty.

“We feel that organized players with strong balance sheet will benefit from measures like the recent demonetization policy and introduction of RERA. The improved liquidity in the system due to demonetization will result in reduction of home loan rates and bring down the EMIs for home buyers, which should give a boost to the real estate sector in the coming quarters. Regulations like RERA will also bring in more transparency in the sector,” said Khetan.

At 10:53 am; the stock was up 12% to Rs 234 on the BSE, as compared to 0.2% rise in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold with a combined 448,171 shares changed hands on the BSE and NSE.