Sobha Developers Q1 net up 7% at Rs 57 cr

The company achieved new sales of 754,779 square feet valued at Rs 482 cr with an average realisation of Rs 6,388 per square feet

Realty major Sobha Developers Limited, on a consolidated basis, registered 7.1% rise in net profit at Rs 57 crore in Q1 of the current financial year. The company earned a PBT of Rs 90.3 crore, recording a growth of 26% over the same period of last fiscal.  

Total turnover was Rs 583 crore during the first quarter of FY 2014-15. J C Sharma, Vice Chairman and Managing Director, Sobha Developers Limited, said that due to the formation of a single-party majority government at the centre after two decades, the market sentiment has become buoyant. "The positive indicators will drive not just the economic growth but also improve the prospects of the real estate sector. The government is focusing on development of infrastructure and the union budget by the new government has clearly chalked out a plan to design and develop 100 new smart cities. Be it the REITs or the more industry friendly FDI norms, we believe that in time to come, there will be numerous opportunities for us to explore. We are confident that our competencies and our execution capabilities will help us stand tall, sustain our operations and grow as the economy grows," he said.

During Q1, the company achieved new sales of 754,779 square feet valued at Rs 482 crore with an average realisation of Rs 6,388 per square feet. The company also collected Rs 593 crore of operational cash flows and net operational cash flow of Rs 7.4 crore. The company has completed and handed over projects in real estate having total area of 1.18 million square feet and four projects in contracts with a total area of 1.07 million square feet in the first quarter of this fiscal.

"We have a healthy pipeline of about 10 million square feet of new project launches planned in the next few quarters in our existing markets. In the month of August we have launched 2 new projects. Sobha Arena in Bangalore is a 1.01 million square feet project and Sobha Lake Edge is a 0.24 million square feet project in Thrissur," Sharma said.

“We have also  about 8.76 million square feet of contractual projects in the pipeline. As of 30th June, 2014, the unbilled revenue of the vertical is approximately Rs 624 crore. We expect our contractual business to grow and continue to be a profitable vertical. Our manufacturing facilities have also progressed from being a unit that was setup to cater to our internal requirements to standalone profit centres,” added . Sharma