Realty and infrastructure stocks are witnessed heavy selling today on reporting disappointing financial results for the first quarter ended June 30, 2011 due to higher interest burden and rising input cost.
DLF, Lanco Infrastructure, IVRCL, Jaiprakash Associates, IRB Infrastructure, Gayatri Projects, NCC,HDIL and Indiabulls Real Estate from the realty and infrastructure sector have declined more than 5% each on the Bombay Stock Exchange (BSE).
The BSE, Realty index, the largest loser among the sector indices has shed almost 5% or 87 points compared to less than 1% drop in the benchmark index Sensex.
Total 148 companies from these sectors declared their June quarter results have reported an average 26% year-on-year (y-o-y) fall in net profit at Rs 2,259 crore despite of 12% jump in operational income at Rs 30,706 crore. Interest cost jumped by 45% at Rs 2,516 crore on y-o-y.
Among the individual stocks, IVRCL tumbled 17% at Rs 40 after net profit declined 85% to Rs 4.21 crore in Q1FY12. NCC slumped 14% to Rs 54.15 at 14:59 on BSE after the company's consolidated net profit declined 44.4% to Rs 31.28 crore during the recently concluded quarter.
