Sobha Developers Posts 14 Per Cent Rise in Q1 Net

Mumbai: Bangalore-based Sobha Developers on Friday reported a 14 per cent increase in consolidated net profit at Rs 57 crore for the quarter ended June 2014.

The company had posted a net profit of Rs 50.1 crore for the corresponding quarter last fiscal year.

Its total revenues for the April-June quarter increased 25.83 per cent to Rs 582.6 crore from Rs 463 crore in the year-ago period.

"The sales in the first quarter have been subdued primarily due to the weak market sentiment in the real estate sector which has also impacted price realisations," Sobha Developers vice chairman and managing director J C Sharma said in an analyst call.

The company's total expenditure during the quarter increased to Rs 339.1 crore form Rs 327.4 crore last year.

During the first quarter, the company recorded new sales of 7.54 lakh square feet valued at Rs 482.2 crore with an average realisation of Rs 6,388 per square foot.

The company also collected Rs 593 crore of operational cash flows and net operational cash flow of Rs 73.9 crore.

"We have unrecognised revenues to the tune of Rs 2,494 crore of sold units. Out of this, we expect around Rs 893 crore to be realised this fiscal," he said.

The company has a healthy pipeline of about 10 million square feet of new project launches planned in the next few quarters in its existing markets.

"This month, we launched two new projects- Sobha Arena in Bangalore of 1.01 million sqft and Sobha Lake Edge with an area of 2.4 lakh sqft in Thrissur," he said.

Sobha's current debt-equity ratio stands at 0.65 and net debt is Rs 1,531 crore.

"The increase in the debt is primarily on account of pursuing investment opportunities in Cochin and Pune. By the end of this fiscal, we hope to reduce our debt-equity ratio so as to contain it around 0.6," Mr Sharma said.

The company which is also in contractual projects business completed four projects with a total area of 1.07 million sq ft in the first quarter.

"We have about 8.76 million square feet of contractual projects in the pipeline. As of June 30, the unbilled revenue of the vertical is around Rs 624 crore and we expect it to grow and continue to be a profitable vertical."

Expressing optimism in the economy and the sector post elections, Mr Sharma said, "The general elections and the formation of a single-party majority government at the centre after two decades, the market sentiments have become buoyant."

"With the thought-out policies and reforms by the new government, we expected that the economy will show signs of improvement in the coming few quarter."

Mumbai: Bangalore-based Sobha Developers on Friday reported a 14 per cent increase in consolidated net profit at Rs 57 crore for the quarter ended June 2014.

The company had posted a net profit of Rs 50.1 crore for the corresponding quarter last fiscal year.

Its total revenues for the April-June quarter increased 25.83 per cent to Rs 582.6 crore from Rs 463 crore in the year-ago period.

"The sales in the first quarter have been subdued primarily due to the weak market sentiment in the real estate sector which has also impacted price realisations," Sobha Developers vice chairman and managing director J C Sharma said in an analyst call.

The company's total expenditure during the quarter increased to Rs 339.1 crore form Rs 327.4 crore last year.

During the first quarter, the company recorded new sales of 7.54 lakh square feet valued at Rs 482.2 crore with an average realisation of Rs 6,388 per square foot.

The company also collected Rs 593 crore of operational cash flows and net operational cash flow of Rs 73.9 crore.

"We have unrecognised revenues to the tune of Rs 2,494 crore of sold units. Out of this, we expect around Rs 893 crore to be realised this fiscal," he said.

The company has a healthy pipeline of about 10 million square feet of new project launches planned in the next few quarters in its existing markets.

"This month, we launched two new projects- Sobha Arena in Bangalore of 1.01 million sqft and Sobha Lake Edge with an area of 2.4 lakh sqft in Thrissur," he said.

Sobha's current debt-equity ratio stands at 0.65 and net debt is Rs 1,531 crore.

"The increase in the debt is primarily on account of pursuing investment opportunities in Cochin and Pune. By the end of this fiscal, we hope to reduce our debt-equity ratio so as to contain it around 0.6," Mr Sharma said.

The company which is also in contractual projects business completed four projects with a total area of 1.07 million sq ft in the first quarter.

"We have about 8.76 million square feet of contractual projects in the pipeline. As of June 30, the unbilled revenue of the vertical is around Rs 624 crore and we expect it to grow and continue to be a profitable vertical."

Expressing optimism in the economy and the sector post elections, Mr Sharma said, "The general elections and the formation of a single-party majority government at the centre after two decades, the market sentiments have become buoyant."

"With the thought-out policies and reforms by the new government, we expected that the economy will show signs of improvement in the coming few quarter."

Mumbai: Bangalore-based Sobha Developers on Friday reported a 14 per cent increase in consolidated net profit at Rs 57 crore for the quarter ended June 2014.

The company had posted a net profit of Rs 50.1 crore for the corresponding quarter last fiscal year.

Its total revenues for the April-June quarter increased 25.83 per cent to Rs 582.6 crore from Rs 463 crore in the year-ago period.

"The sales in the first quarter have been subdued primarily due to the weak market sentiment in the real estate sector which has also impacted price realisations," Sobha Developers vice chairman and managing director J C Sharma said in an analyst call.

The company's total expenditure during the quarter increased to Rs 339.1 crore form Rs 327.4 crore last year.

During the first quarter, the company recorded new sales of 7.54 lakh square feet valued at Rs 482.2 crore with an average realisation of Rs 6,388 per square foot.

The company also collected Rs 593 crore of operational cash flows and net operational cash flow of Rs 73.9 crore.

"We have unrecognised revenues to the tune of Rs 2,494 crore of sold units. Out of this, we expect around Rs 893 crore to be realised this fiscal," he said.

The company has a healthy pipeline of about 10 million square feet of new project launches planned in the next few quarters in its existing markets.

"This month, we launched two new projects- Sobha Arena in Bangalore of 1.01 million sqft and Sobha Lake Edge with an area of 2.4 lakh sqft in Thrissur," he said.

Sobha's current debt-equity ratio stands at 0.65 and net debt is Rs 1,531 crore.

"The increase in the debt is primarily on account of pursuing investment opportunities in Cochin and Pune. By the end of this fiscal, we hope to reduce our debt-equity ratio so as to contain it around 0.6," Mr Sharma said.

The company which is also in contractual projects business completed four projects with a total area of 1.07 million sq ft in the first quarter.

"We have about 8.76 million square feet of contractual projects in the pipeline. As of June 30, the unbilled revenue of the vertical is around Rs 624 crore and we expect it to grow and continue to be a profitable vertical."

Expressing optimism in the economy and the sector post elections, Mr Sharma said, "The general elections and the formation of a single-party majority government at the centre after two decades, the market sentiments have become buoyant."

"With the thought-out policies and reforms by the new government, we expected that the economy will show signs of improvement in the coming few quarter."

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