Sobha Developers drops after weak Q4 numbers

The company announced Q4 results after market hours on Friday, 10 May 2013.

Meanwhile, the S&P BSE Sensex was up 21.79 points or 0.11% at 20,104.41.

On BSE, 2,920 shares were traded in the counter as against average daily volume of 29,422 shares in the past one quarter.

The stock hit a high of Rs 403.50 and a low of Rs 391.70 so far during the day. The stock had hit a 52-week low of Rs 282.45 on 25 May 2012. The stock had hit a 52-week high of Rs 472.40 on 13 February 2013.

The mid-cap real estate developer has equity capital of Rs 98.06 crore. Face value per share is Rs 10.

Sobha Developers' consolidated net profit rose 5.4% to Rs 217.20 crore on 32.4% growth in net sales to Rs 1860.20 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

Commenting on the company's performance, Mr. J C Sharma, Vice Chairman and MD, Sobha Developers said, "Throughout fiscal 2013, we delivered to market a strong line-up of products and services which translated into double-digit revenue growth. Our sales performance has been consistent and the entry into markets like Chennai and Gurgaon has spurred growth. Sobha generated the highest ever operating cash flow in this fiscal. The overall reduction of the debt by Rs 105 crore has resulted in a debt-equity ratio of 0.57. We will maintain this momentum"

Speaking about the contractual side of the business, Mr. Sharma said, "The contractual segment has growth by 20% YoY on a consolidated basis. As of today, Sobha has 10.65 million square feet of contractual work with an order book value of Rs 534 crore, which will be executed in the next two years. During FY 2013, we have received new contractual orders (other than Infosys) of the value of Rs 122.80 crore".

With regard to the company's growth plans, Sobha said that the improving cash flows have prompted the company to look for new opportunities in emerging markets as well as its existing locations. In the current financial year, Sobha plans to make a foray into new geographies like Kochi, Kozhikode (Calicut), Hyderabad and Noida/Ghaziabad region, the company said. The company further added that it is committed to work within the debt-equity ratio of around of 0.6.

"We strongly believe that the market for premium housing is growing at a healthy pace, and Sobha, with its superior and well-differentiated product line, is all set to capitalise on the rising demand", remarked Mr. Sharma.

Sobha said the company is well positioned for the current fiscal. It has a project pipeline of 8.9 million square feet for FY 2014, the company said in a statement.

Sobha Developers' board of directors at a meeting held on Friday, 10 May 2013, recommended dividend of Rs 7 per share for FY 2013.

Sobha Developers is a real estate developer. It is primarily focused on residential and contractual projects.

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