- Consolidated Sales doubles to Rs. 9512 mn.
- Consolidated Net Profit up 78% to Rs. 2519 mn.
- 3 mn. sq. ft. sold for a value of Rs. 27,089 mn.
D B Realty Limited (“DBR or the “Company”) has performed well for the financial year ending March, 2010. The Company (excluding TDR sales) has sold 3 mn sq. ft. of residential space for a total value of Rs. 27089 mn as against 0.52 mn sq. ft. in the previous year for a total value of Rs. 2808 mn.
DBR follows the percentage completion method for revenue recognition and as such only Orchid Woods, Orchid Ozone, and Mahul project revenues have been recognized.
The total consolidated revenue of the Company on the basis of percentage cost completion method has doubled to Rs. 9512 mn as against Rs. 4644 mn as compared to the previous year. The Operating Profit is up 63% to Rs. 3560 mn against Rs. 2184 mn in the previous year. The Company earned a cash profit of Rs. 3220 mn as against Rs. 1579 mn in the previous year.
After providing for Depreciation (Rs. 96 mn) and interest of Rs. 726 mn. The consolidated Profit Before Tax of the Company has doubled to Rs. 3125 mn. The consolidated
Net Profit (after minority interest) is up by 78% to Rs. 2519 mn as against Rs. 1417 mn in the previous year.
The Company’s debt equity as at March 2010 is 0.21 times, reaffirming the company’s focus on effective cash flow management and construction related borrowings only.
The Company continues to maintain a high liquidity with about Rs. 8950 mn temporarily invested in liquid mutual funds from the IPO proceeds received during the year which constitutes availability of funds for the future growth opportunity envisaged.
DBR will continue to focus on achieving higher sales and consequently higher cashflow generation which we believe is most relevant in the real estate business.
All the ongoing projects of the Company are progressing as scheduled and the relevant details of each of the projects available on the Company’s website.
The Company has consciously worked towards reducing its contingent liability which has been reduced from Rs. 25189 mn to Rs. 22169 mn. We expect this liability to further reduce by Rs. 10000 mn during the next two quarters.
It is widely expected that from FY 2011 onwards all companies with net worth in excess of Rs. 1000 crore will be required to adopt the International Financial Reporting Standards (IFRS) for reporting their financial statements. In line with this expectation, the Company is exploring to report under IFRS along with the Indian GAAP (as statutorily required) from the current financial year on a quarterly basis.
This will facilitate investors to have a clear perspective as to the key accounting differences between Indian GAAP and IFRS so as to have a complete clarity as and when IFRS accounting norms become mandatory.
The year on year growth was the result of a robust market coupled with the Company’s marketing initiatives and brand awareness. DBR continues to focus in its core Mumbai real estate market where it is one of the largest developers in the residential space.
The Company expects the housing demand to be buoyant and the real estate prices are expected to stabilize at the current levels in this year.
In view of the expected buoyancy and stabilizing prices, DBR expects to grow its sales by about 50% over sales for the current year and expects to have a significant increase in the cashflow.
