Oct. 17 (Bloomberg) -- Oberoi Realty Ltd., India’s second-largest property developer by market value, had the biggest gain in more than five months in Mumbai trading after second-quarter profit rose 17 percent as sales growth beat analysts’ estimates.
The shares jumped as much as 7.5 percent, the most since June 1, and traded at 238 rupees as of 9:43 a.m. local time. The earnings were reported on Oct. 15.
Net income at the Mumbai-based company increased to 1.11 billion rupees ($22.7 million) in the quarter ended Sept. 30, from 955 million rupees a year earlier. That was in line with the 1 billion rupee median estimate of analysts in a Bloomberg News survey. Sales climbed 31 percent to 2.2 billion rupees, higher than the 1.73 billion rupee estimate.
“Oberoi’s profit was largely in line with our expectations, but revenue came in ahead of our estimates,” said Aatash Shah, a Mumbai-based analyst at Nomura Holdings Inc.
The higher revenue was primarily from the completion of the company’s Oberoi Splendor project in Mumbai during the quarter, and better-than-expected construction progress at its residential projects during the monsoon season, Shah said in a note to clients dated yesterday.
Oberoi Realty, backed by Morgan Stanley, raised 10.3 billion rupees after selling shares at 260 rupees each in an initial public offering in October last year.
To contact the reporter on this story: Pooja Thakur in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Andreea Papuc at email@example.com