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DB Realty net profit dropped 33 per cent to Rs 41 crore for the quarter ended June 30, 2011, against Rs 61 crore logged in the same period last year, largely on account of rising interest rates and input costs.
Revenue was down at Rs 222 crore against Rs 265 crore.
Mr N. Shridhar, Group Director (Business & Strategy), said, “Rising interest rates and input costs coupled with delayed approvals have resulted in a slowdown in the sector. We have also managed to reduce our debt burden in this quarter and the bank debt as at the end of the quarter stands at Rs 242.5 crore.”
To diversify the asset portfolio and invest in strong yield assets, DB Realty will invest in DB Hospitality which has approximately 550 keys across three operating hotels in Mumbai, Goa and Ahmedabad and is in the process of developing close to 1,900 keys spread across eight hotels in five cities, he added.
During the quarter, DB Realty sold 594,000 sq.ft., which includes transfer of development rights.
On Friday, the DB Realty scrip on the BSE closed marginally up at Rs 68.35.
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