Sobha net falls 52% in FY09

Real estate company Sobha Developers’ net profit has more than halved for the 2009 financial year, as property sales dipped sharply in the country, leading to dropping revenues and profits.

Sobha posted a profit of Rs 109.67 crore for the year ending March 2009 compared to Rs 228.30 crore it posted in the previous financial year, the company said in a release. The company’s net sales also dropped 32 per cent at Rs 974.74 crore for FY09 compared to Rs 1,422.60 crore it posted in the previous financial year.

The company did not give Q4 results.

“It had been a very challenging year. Economic downturn had a major impact on the company in terms of reduction in sales and profits,’’ said JC Sharma, managing director of Sobha.

Measures such as long term capital raising, stake sale in projects and disposal of certain lands are expected to bring debt equity to less than one before the end of this fiscal, Sharma said.

The company has adopted innovative marketing, varying product mix to target the property buyers and cut expenses and improve efficiencies, Sharma said adding: ‘’Based on the current indications, we are expected to fare better in the current financial year,’’ he said.

Currently, the company has more than 30 projects with a total area of 9.30 million square feet under construction and also 34 projects nearing 5.85 million sq ft under contract from Infosys and other companies, the company said.