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DB Realty Shares Fall 7% After Disappointing March Quarter Earnings

The deals will fall into related party transactions and are said to be done at an arm’s length basis.

Shares of DB Realty tumbled in early trading on May 31 after the company reported a sharp drop in operating income and a large loss for the quarter ended March.

The company said its consolidated revenue stood at Rs 58 crore, compared with Rs 196 crore a year earlier. This includes a loss of Rs 626.23 crore due to its subsidiaries forming joint ventures to develop land plots.

The drop in revenue came as other real estate firms posted record-breaking pre-sale bookings and new project launches, boosting revenue and profits.

As a result, the company posted a net loss of Rs 52 crore, compared to a profit of Rs 506 crore in the same period last year. Earnings for the base quarter were as high as Rs 508 crore. Excluding this gain, the total loss for the underlying quarter was Rs 2 crore.

Investors could not digest such disappointing numbers and wanted to get out first. The stock was down nearly 7% at Rs 83 by 10:20 am. As a result, it has also given back most of its gains over the past two weeks. However, over the one year, the stock is still up 18.36%, while the Sensex is up nearly 13%.

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