Mumbai: Two Mumbai-based real estate firms—Oberoi Realty Ltd and Indiabulls Real Estate Ltd—saw significant declines in their net profit in the third quarter ended 31 December on lower sales.
Oberoi Realty reported a 60% drop in its net profit to Rs84.92 crore in the third quarter as compared to the year-ago period. The company’s total income which includes net sales and other operating income stood at Rs252.17 crore, down 67.8% during the quarter from the corresponding period last financial year.
Many property advisers and consultants had predicted a major drop in homes sales in the October-December quarter after the government withdrew high-value currency notes on 8 November.
Indiabulls Real Estate Ltd posted a 13.7% decline in its net profit to Rs58.6 crore in the third quarter ended 31 December, 2016 due to a drop in sales during the period.
The company said its total income during the third quarter fell 57.8% to Rs300 crore from Rs711.5 crore during the corresponding period last financial year.
Revenue from the company’s real estate development and other related activities dropped by 72.2% to Rs174.5 crore during the reporting quarter. Revenue from company’s rental business jumped by 13.2% to Rs134.5 crore during the period.
Shares of IBREL closed at Rs81.55, up by 1.49%, while ORL’s fell by 0.74% to Rs309.75 from the previous close on the BSE.