Sobha Developers Q1 net profit up 14% to Rs 57 cr

Company's net profit stood at Rs 50.1 crore in the year-ago period

Realty firm Sobha Developers today reported a 14% increase in its consolidated net profit at Rs 57 crore for the quarter ended June on higher sales.

Its net profit stood at Rs 50.1 crore in the year-ago period.

Total income rose by 26% to Rs 582.6 crore in the first quarter of this fiscal as against Rs 463 crore in the corresponding period of the previous year.

"The macro-economic factors that slowed our economy last year continued to prevail even during the first few months of this year. However, post the general elections and the formation of a single-party majority government at the centre after two decades, the market sentiments have become buoyant," Sobha's Vice Chairman and Managing Director J C Sharma said.

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

During Q1 of FY15, Bangalore-based firm achieved new sales of 7.54 lakh sq ft valued at Rs 482.2 crore with an average realisation of Rs 6,388 per sq ft.

"Our current debt-equity ratio is 0.65 and our net debt is Rs 15.31 billion. 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," Sharma said.

"We have a healthy pipeline of about 10 million sq ft 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," he added.