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Sobha Ltd.

BSE: 532784 Sector: Infrastructure
NSE: SOBHA ISIN Code: INE671H01015
BSE 00:00 | 22 Oct 779.20 4.95
(0.64%)
OPEN

783.00

HIGH

800.00

LOW

755.40

NSE 00:00 | 22 Oct 779.65 8.20
(1.06%)
OPEN

777.85

HIGH

802.55

LOW

755.95

OPEN 783.00
PREVIOUS CLOSE 774.25
VOLUME 31826
52-Week high 900.00
52-Week low 240.00
P/E 104.45
Mkt Cap.(Rs cr) 7,391
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 783.00
CLOSE 774.25
VOLUME 31826
52-Week high 900.00
52-Week low 240.00
P/E 104.45
Mkt Cap.(Rs cr) 7,391
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sobha Ltd. (SOBHA) - Chairman Speech

Company chairman speech

Dear Shareholder's and Friends of SOBHA

FY 2020-21 began with an unexpected and unusual turn of events. Thedeclaration of a national lockdown albeit an effective tool to combat the rising COVIDthreat came all too sudden for people business and the economy to even fathom. SOBHAover our journey in the past 25 years has witnessed several such stress tests which notonly have we confidently overcome but at same time have imbibed their learnings. Hereagain we were of the firm belief that the resilience challenge posed by COVID would be nodifferent.

We immediately began to double down efforts on all key parameters ofour business. In the last fiscal SOBHA made significant progress in its debt reductionefforts. This was made possible due to improved sales numbers stronger cash flows and adecline in interest rate on our borrowings in recent quarters. SOBHA's total incomein FY 2020-21 stood at 21.90 billion with a cash inflow of 30.77 billion. SOBHA alsorecorded its highest ever yearly sales value of 31.37 billion in FY 2020-21. In Q4-21 thereal estate vertical achieved the best ever quarterly sales volume of 1.34 million sq.ft.(SBA) along with the highest ever quarterly cash inflow of 7.15 billion.

During the financial year we have completed 2.56 million square feetof developable area. We also launched new projects with a developable area of 3.66 millionsquare feet. These launches were spread across Bangalore and Thrissur. Overall SOBHA hasdelivered 112.30 million sq.ft. of residential and commercial developments since itsinception. Today the Company has a presence in 27 cities across 14 states through itsresidential and contractual project portfolio.

The improved financial metrics for the fiscal show SOBHA'sresilience and strong business fundamentals even in a year severely affected by thepandemic. This has been possible due to our unique self-reliant business model thatenables optimal resource utilization and timely project delivery with unmatched quality.In our journey over last 25 years we have also been able to gain trust of our customerswith a focus on world class product quality unwavering commitment sincere hard work andtransparency. In today's uncertain times when the Real estate industry is undergoingconsolidation and customers are seeking to minimize risk this trust from customers hasheld us in good stead.

However the tough macroeconomic conditions engendered by the pandemichave forced quicker decision making in organizations with very little reaction times. AtSOBHA we have adapted to this crisis by changing how we collaborate. There has been aparadigm shift within the organization and the internal collaboration between teams hasbecome much more effective and technology driven. We have also driven digitization in oursales and marketing processes through rapid adoption of technology. Our initiatives likethe STM app and centralized call centre are already showing positive results.

In the last fiscal we have made significant progress in drivingoperational efficiency improvement in cash flows and reduction in overall debt. We havebeen able to leverage on technology and process improvements throughout the organizationto achieve these goals successfully.

Immediately after the lockdown restrictions were eased our focus wasto restart project execution and avoid any effect on delivery timelines. We were able toachieve this by putting new SOPs in place to minimize the impact of the pandemic on ourpeople and overall productivity. All COVID related protocols were strictly followed at allour sites. Workers were tested for COVID and a strong framework for safety and hygiene wasput in place. As a result our project teams got back to action with safety and speed.Through our CRM team we also provided comfort to our customers by addressing all pandemicinduced apprehensions about delivery timelines.

This drive for constant improvement through technological interventionsand process changes has now been deeply ingrained in our DNA. Through improvedcross-functional collaboration especially between Design and Project teams we havefocused extensively on value engineering as an organization wide initiative. We arestriving to improve operational effectiveness by making our project designs moreefficient benchmarking structural designs and working on vendor development. One exampleof such a cross-functional collaboration effort is an increased utilization of Precasttechnology in project execution. We are now increasingly using precast elements forbasements and ancillary structures like UG sumps in our projects. This has helped us inaccelerating our execution timelines without any compromise on quality and workmanship.

We are also working on incorporating technology in our design workflowso that we can reduce the time required for bringing a project from conceptualizationstage to drawing preparation and submission stage. Since we have a self-reliant operatingmodel we are able to make changes and incorporate market inputs in our project designsmuch faster. For instance we have already started designing larger homes with ampleworking spaces and with the option of home offices to cater to the new requirement of‘Work from home'.

SOBHA has been able to transform the way we interact with our potentialand existing customers through use of technology. We have made the sales processmuch more seamless through pan India implementation of virtual site visits. This allowsour customers to have an immersive view of our experience centers and show residences. Italso enables the salesperson to showcase project interiors and exteriors along with theproject plans effectively. With this implementation we have been able to drive saleswithout physical interaction with customers and help them in making the purchase decisionfrom the comfort of their homes safely.

We have driven these massive changes in our sales and marketing processwith the help of our newly created central marketing team that now comprises over 150members. The team has been able to bring in more efficiency in the client acquisitioncosts and has made us more effective in handling customer enquiries. Our focus onefficiency is also visible in initiatives like marketing automation tools and use ofbusiness intelligence platforms.

Our world class products and customer centricity has attracted multipleawards and recognitions despite the pandemic. The Financial Times recognized SOBHA as oneof the 500 high-growth companies in the APAC region. We were also recognized as ‘Oneof India's Top Builders' at the CWAB (Construction World Architect and Builder)Awards. The Company was given the ‘Developer of the Year' award in the nationalcategory by Franchise India. These recognitions have encouraged us to carry on with thework that we have been doing for the last 25 years with more sincerity and a renewedvigor.

SOBHA's business growth has always been interwoven with ourunwavering efforts towards enabling the growth of our societies. Under the aegis of theSri Kurumba Educational and Charitable Trust SOBHA carries out transformative work in 3panchayats of Palakkad Kerala since 2006. All CSR activities at SOBHA stem out of agenuine concern for the underprivileged. Our CSR work covers areas like education healthwomen empowerment and livelihood programs for nearly 4525 families (around 17311people) from the below poverty line (BPL) segment.

I would like to thank all my colleagues on the Board for their valuableguidance and support. They have helped us in setting up new benchmarks and in buildinggreater corporate resilience. I am also thankful to all our employees workers andstakeholders for their continued faith in SOBHA. I hope that you will as always continueto provide us with support and encouragement so that we can emerge stronger each year.

Wishing you all a safe and a healthy year ahead.

Ravi PNC Menon

.