Sobha Developers’ PAT up 11.3% in Q1, price realisation grows 14%

Bangalore-based real estate firm Sobha Developers Ltd has posted over 11 per cent growth in both revenues and earnings for the first quarter ended June 30, 2013, backed by healthy growth in core operations.

Its operating revenue grew 11.8 per cent to Rs 475 crore during Q1 FY14, compared to Rs 425 crore in the year-ago period. Net profit rose to Rs 50.1 crore as against Rs 45 crore in Q1 FY13.

The developer is also looking to launch projects in various micro-markets like Kozhikode and Kochi during the current financial year. 

JC Sharma, vice-chairman and managing director of Sobha Developers, said, “Notwithstanding a slowing economy and a sliding rupee, there was a sustained momentum in sales. During the quarter, the company sold 0.92 million sq. ft. of new space, compared to 0.84 million sq. ft. in the corresponding period last year. Average sales price realisation improved to Rs 6,548 per sq. ft. as compared to Rs 5,737 per sq. ft. in the year-ago period.”

The value of new sales increased 25.7 per cent and the new area sold rose 10.2 per cent, compared to Q1 FY13. The average sales realisation went up 14.1 per cent, compared to Q1 of the last fiscal year and 4.02 per cent sequentially.

Core revenues increased 37 per cent year on year while profit after tax increased 46 per cent. There was no land monetisation last quarter as compared to Rs 95.6 crore coming from land asset sale in the corresponding quarter of the previous year.

According to Sharma, the unbilled revenue, as of June 30, 2013, was Rs 1,970 crore on the sales made so far, out of which he expects a minimum of Rs 511 crore to be recognised during the next three quarters of FY14.

During Q1 FY14, Sobha launched two new projects, measuring 0.40 million sq. ft. In addition, it released about 0.53 million sq. ft. of area from existing projects for sale. The company also completed and handed over two contractual projects, measuring 0.13 million sq. ft. of developable area.

Last quarter, it launched two projects in Bangalore – Sobha Landscape, a plotted development project measuring 0.20 million sq. ft., and a commercial project on St Mark’s Road, Bangalore, comprising a total developable area of 0.36 million sq. ft. and a super-built-up area of 0.20 million sq. ft.

The firm currently has 45 ongoing residential projects, aggregating to 26.79 million sq. ft. of developable area and 18.90 million sq. ft. of saleable area, and 40 ongoing contractual projects, aggregating to 11.41 million sq. ft. under various stages of construction.

At present, Sobha has a real estate presence in seven major cities including Bangalore, Gurgaon, Chennai, Pune, Coimbatore, Thrissur and Mysore.

(Edited by Sanghamitra Mandal)

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