Sobha Ltd registers a profit of 5.12 percent in the second quarter of 2014
Sobha Ltd. has posted a consolidated profit of 5.12% for the second quarter of 2014 through newer sales and greater realization of per square feet.
During the financial year 2014-15, the net profit of the Bengaluru based Shobha Ltd stood at Rs 59.5 crores which was Rs 56.6 crores in the previous year’s same period. The company’s total income is increased by 24 percent at Rs 69.5 crores as compared to Rs 540 crores in the past year. The earnings per share have been estimated at Rs 6.07 per share in this quarter comxpared to Rs 5.77 in the past year.
Rise in Debt
Shobha Ltd achieved a sales figure of Rs 559 crores with average realization at Rs 6703 per square foot. Also, net operational cash flow of the company was estimated at Rs 92.8crores and the company collected Rs 725 crores. Presently, the debt to equity ratio of Shobha is 0.70 with net debt outstanding at Rs 1678 crores. The rise in debt has been because of newer projects in Pune and Kochi with capita expenditure and pay outs.
Growth aspects
The revenue unbilled of Sobha Ltd till 30th September was around Rs 2210 crores on the sales made. Of the sales made, roughly Rs 708 crores shall probably be recognized in the second half of the present financial year. In the past 20 years, the company has delivered 95 realty projects and 253 contractual ones.
The company feels it is the only player in the realty market which has delivered quality projects on a large scale and size. Also, it has 50 residential projects that are ongoing which have 23.96 million square feet saleable area. There are around 31 contractual projects ongoing which cover 9.35 million square feet.
Market Sentiment
After the advent of the new central government, there has been an improvement in real estate market. As the economy has exhibited recovery signs, investor sentiments have improved too. Crude oil prices have gone down and interest rates too shall come down. Inflation has already been brought under control. However, even though the economy is undergoing such benefits, the realty scenario has not benefitted much. Nevertheless, the company expects the real estate market to benefit in the coming future.
Source: Business line
