Arvind Infrastructure Limited, real estate arm of Arvind Limited, has posted standalone net profit of Rs 17.86 lakh for the fourth quarter ended March 2016, against Rs 8.66 lakh in the same period last year.

The company shares jumped around 20 per cent to close at Rs 99.75 on the National Stock Exchange (NSE) on Friday as the investors welcomed the strong financial performance of the company.

Total income from operations stood at Rs 91.16 crore for the quarter against Rs 19.51 crore in the corresponding quarter last year. For the fiscal 2015-16, standalone profit stood at Rs 17.30 crore, up from Rs 11 crore last year. Standalone income for the year stood at Rs 113.1 crore against Rs 61.3 crore reported last year.

Kamal Singal, Managing Director & CEO of the company said, "The Company has been performing consistently well in spite of real estate market suffering from subdued consumer sentiments. The short term outlook is expected to remain low, though, in the medium to long term, positive outlook shall prevail on account of gradually reducing interest rates, formation of RERA Act, lower inflation and increased urbanization."

Speaking to BusinessLine from London, Porinju Veliyath, Managing Director and Portfolio Manager, Equity Intelligence India Ltd, said, "The company is of a great value. In spite of the problems faced by the real estate industry in the past in India, the company has performed well. It is broadly because of the favourable macro-economic factors. This company is undervalued at the current market cap. Looking at the infrastructure potential in the country and requirement of homes, we see its market cap getting multiplied in next two-three years," said Veliyath.

The parent, Arvind Limited's move of de-merge its real estate business from the flagship company to an infra arm, Arvind Infrastructure was initially perceived with suspicion as Foreign Institutional Investors maintaining a distance from the counter, it was possibly due to the small size of the company, analysts believed.

For the analysts, at the lower market cap, the counter is a good bet.

"It is worth a bet among the real estate and infrastructure counters. The company gets strong backing from Arvind Group, while on the other, the business prospects are improving with greater emphasize on the housing and infrastructure by the Government," said an analyst from a Mumbai-based broking house.

On consolidated basis, net profit for the quarter stood at Rs 17.86 crore against Rs 8.77 crore in the same period last year. Consolidated total income for the quarter stood at Rs 91.11 crore against Rs 31.63 crore in the same quarter a year ago.

For the full year, company's consolidated profit stood at Rs 17.21 crore against Rs 10.61 crore last year. Consolidated revenues for the year stood at Rs 115 crore against Rs 87.06 crore last year.

Consolidated EBITDA stood at Rs 36.68 crore in the year under review, as against Rs 25.20 crore in the previous financial year showing a growth of 46 per cent.

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