DB Realty Surges to 52-Week High on Strong Q2 Earnings

7 Nov 2023 , 02:05 PM

DB Realty’s shares surged over 6% to a 52-week high of Rs 193 on November 7, driven by the company’s robust Q2 financial results and its intention to sell a subsidiary for Rs 231.42 crore.

The company’s net profit for the July-September quarter witnessed a remarkable 55.5% year-on-year increase, reaching Rs 884.20 crore compared to Rs 569 crore in the previous year. This impressive growth was supported by a substantial surge in revenue, which skyrocketed to Rs 68 crore, a significant rise from Rs 10 crore in the corresponding period.

Additionally, the company’s other income reached Rs 821.85 crore, primarily attributed to gains from divestment and unwinding of financial assets.

DB Realty’s operational performance remained strong, with an EBITDA margin of 76%. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also exhibited significant improvement, reaching Rs 51.70 crore in Q2, in contrast to a loss of Rs 14.10 crore in the previous year.

During the quarter, the company successfully repaid debt worth Rs 824.40 crore. Furthermore, DB Realty announced plans to divest its 100% stake in Real Gem Buildtech to Rustomjee Group’s Kingmaker Developers in a deal valued at Rs 231.42 crore. The company anticipates that this transaction will generate a substantial amount of free cashflow and contribute to cleaning up its balance sheet.

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