DB Realty, the Mumbai-based real estate company whose promoters Vinod Goenka and Shahid Balwa are behind bars in the 2G telecom scam, declared the financial results for 2010-11, a week after the designated date.
The company posted a 19 per cent increase in net profit for the financial year 2011. The net profit stood at Rs 298.7 crore for the year ended March, against Rs 251.9 crore in the previous year. The previous year's figure is from the company's annual report, as DB Realty was listed on the stock exchange on February 24, 2010.
Although DB Realty did not declare its fourth quarter results separately, a company official put the figure of net sales at Rs 402.3 crore and net profit of Rs 8.03 crore for 2011. A comparative figure for the fourth quarter of the financial year 2010 was not available. The company saw sluggish sales in the last quarter and expects realty market in Mumbai to correct by 10-15 per cent in the next three to six months.
For the full year, the company's total income increased by 35 per cent at Rs 1327.2 crore compared to Rs 980.3 crore last year.
“In spite of the sluggish market conditions, DB Realty’s financial performance over the last year has been encouraging. We have still managed to make progress on our key business parameters while dealing with the rising input costs," said N Shridhar, group director, (business strategy and finance).
The company sold transfer of development rights (TDR) of 0.65 million sq ft and generated cash of Rs 570 crore for the year from its total revenue of Rs 1,726 crore.
The company said it has a debt of Rs 465.6 crore as on March 2011, and a debt equity ratio of 0.14.
"As of today, we have debts of around Rs 250 crore and a very low debt-equity ratio. We have enough headroom to raise any debt for our project needs," said Shridhar.
The company has 86 million sq ft under construction projects and it is not looking at land acquisition for the current financial year. It has seen project cost escalation for its Orchid Woods and Crown projects, both located in South Mumbai.
