Shares of DB Realty tanked in early trade on May 31, after the company reported a sharp drop in revenue from operations as well as a large loss for the quarter ending March.
The company said its consolidated revenue came in at Rs 58 crore against Rs 196 crore in the same quarter last year. This includes a loss of Rs 626.23 crore due to its subsidiary entering into a joint venture for the development of a land parcel.
The loss of revenue has come at a time when other real estate companies have seen record breaking pre sales booking and launch of new projects lifting their revenue and profits.
The financials
Consequently, the company suffered a net loss of Rs 52 crore, against a profit of Rs 506 crore in the year ago quarter. The base quarter has an exceptional gain of Rs 508 crore. Not considering this gain, the total loss in the base quarter stood at Rs 2 crore.
Investors could not digest such disappointing numbers and looked to exit at the first chance. As of 10.20 am, the stock traded down nearly 7 percent to Rs 83. Thus, it also wiped off much of its gains in the last two weeks. However, for the one year period, the stock is still up 18.36 percent, against Sensex’s gain of nearly 13 percent.
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