Sobha Developers Q1 net up 23.77% at Rs 50 cr

The company's operating profit is up 51.24 per cent at Rs 103.60 crore in Q1 as against Rs 68.50 crore clocked last year. The company's total income for the Q1 is also higher by 29.56 per cent at Rs 348.80 crore as against Rs 269.20 crore registered in the previous year, as it sold more villas and high-end residential apartments. EPS for Q1 stood at Rs 6.93 as against Rs 5.60 in the previous year.

The company's board of directors have also approved to issue shares on rights basis to the existing shareholders to raise Rs 350 crore to augment the long-term resources of the company.

J C Sharma managing director, Sobha Developers said "The company's rights issue will improve debt to equity ratio and also strengthen the capital base."

He further said, "Recent developments on the Indian economic outlook have witnessed a tightening of interest rates. Facilitating credit for growth on one hand and containing liquidity to tame inflation on the other is what Sobha is gearing up to face. Identifying customer trends in requirements, adapting to meet them and scalability in project execution results in qualitative and timely delivery at competitive costs. Inflation is translating into high commodity prices that have an impact on the real estate market. But at Sobha we are treading the path of cautious optimism for the future as we can promise international quality at competitive prices even in a difficult market scenario".