Sunteck Realty Turns Profitable in Q2, Shares Soar Over 15%

Sunteck Realty shares jumped over 15 per cent to an intraday high of Rs 240 on Tuesday, as the company reported a profit of Rs 96 crore for the September quarter against a loss of Rs 8 crore in the corresponding quarter a year ago.

Revenue of the Mumbai-based developer jumped nearly six-fold to Rs 206 crore in Q2 compared to Rs 30 crore last year, the company said.

Sunteck Realty's performance in the second quarter of FY2017 was supported by nearly doubling of its operating margin to 61 per cent against 33 per cent last year.

"Our prudent cash flow management practices along with financial discipline have enabled us to strengthen the balance sheet further," Kamal Khetan, chairman and managing director at Sunteck Realty, said in a release to Bombay Stock Exchange.

Commenting on its business outlook for the coming quarters, Mr Khetan said, "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."

The government last month announced withdrawal of the legal tender status of banknotes of Rs 500 and Rs 1,000 denomination, in its fight against black money.

As of 12:15 p.m., Sunteck Realty shares traded 9.4 per cent higher at Rs 228.15 apiece compared to a 0.32 per cent gain in the broader Sensex.