Sobha FY20 net profit down 5% to Rs 281.5 cr, sales bookings at Rs 2,881 cr

Bengaluru-based realty firm Sobha Ltd has reported a 5 per cent decline in its consolidated net profit at Rs 281.5 crore for the last fiscal despite higher income and achieved strong sales bookings of Rs 2,881 crore.

Its net profit stood at Rs 297.1 crore in the financial year 2018-19.

Total income, however, rose to Rs 3,825.7 crore in 2019-20 from Rs 3,515.6 crore in the preceding fiscal.

Net profit in the fourth quarter of FY20 fell to Rs 50.7 crore from Rs 113.3 crore in the year-ago period.

Total income for the March quarter dipped to Rs 927.6 crore from Rs 1,421.6 crore in the corresponding period of the previous year.

Sobha has achieved the highest ever total sales volume of 4.07 million square feet valued at Rs 2,881 crore during FY20, the company said.

Total cash inflow for FY20 stands at all time high of Rs 3,647 crore. It delivered 5.86 million square feet of developable area during 2019-20.

"FY 2019-20 has been an exciting and a challenging year. As we started FY20 on the back of one of the strongest performances, a gamut of new events unfolded which to a larger extent reversed the benefit of reforms witnessed during the previous 3 to 4 years," said J C Sharma, Vice Chairman and Managing Director, Sobha.

"Major world economies slipping into recession followed by the unprecedented COVID-19 pandemic have put the largely labour intensive sectors like construction in a tight spot.The pandemic has adversely impacted both human lives and businesses world over," he added.

Sharma said the company is well equipped to face the current challenge due to "adoption of innovative technological tools, self-reliant model, strong brand, on time delivery,robust balance sheet, presence in major cities, availability of sufficient liquidity and huge land bank for future growth."

Sobha currently has ongoing real estate projects aggregating to 39.36 million square feet of developable area and 27.41 million square feet of saleable area. It also has ongoing contractual projects aggregating to 9.44 million square feet.

As on March 31, 2020, the company delivered 109.74 million square feet of developable area.

Sobha has a real estate presence in 10 cities, viz. Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gujarat (Gift City) and Mysore. Overall, it has a footprint in 27 cities in 14 states.