DB Realty profit affected due to economic environment. Will diversify in hospitality

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DB Realty profit affected due to economic environment
D B Realty: Quotes, News
BSE 39.80BSE Quote1.25 (3.14%)
NSE 39.95NSE Quote0.7 (1.75%)
DB Realty, one of the strongest company in the real estate sector have announced their June quarter result. The company saw its profit grow from Rs 8.1 crore in March 2011 to Rs 41.2 crore in June 2011. If current quarter is compared to the previous quarter then net profit slipped by 33%. This was due to change in the market conditions and increase in input cost.

Commenting on the result, N Shridhar, Grooup Director (business & Strategy), DB relaty said, "Rising interest rates and input cost coupled with delayed approvals have resulted in slowdownin the sector."

He further added, "AT DB Relaty we see a slodown in saled coupled with an increase in input costs in the last 6 months. However we have regustered a stable quarter in terms of profitability bt making progress in our key projetcs and parameters also the sale of some non-core assets has contributed to the increase in profit for the quarter."

Shridhar also said that the company has managed to reduce the debt burden in this quarter and hence, the bank debt stands as at the end of the quarter at Rs 2,42.5 crore and with a debt equity ratio of 0.07.

The interesting part of the announcement was that in order to diversify DB Realty will now be investing in DB Hospitality which runs the hetels in Mumbai, GOa and Ahmedabad.

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Read more about: bse, nse, real estate, db realty
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