Sobha Developers has posted a 73 per cent increase in net profit to Rs 45 crore on revenues of Rs 435 crore, which grew by 57 per cent. The company has registered new sales volume of 0.84 million, up 25 per cent, while the sales value is up 58 per cent at Rs 479 crore. The average price realisation of Rs 5,737 per square feet, is up 26 per cent. The debt : equity ratio is at 0.58 on a consolidated basis and has completed projects measuring 1.18 million sq ft and is targetting sales value of Rs 2,000 crore during FY13.
Commenting on the current market scenario, J C Sharma, Vice Chairman & Managing Director, Sobha Developers Limited, said, “Although factors like inflationary pressures, high input costs, the deceleration in the GDP growth, and challenging macro economic environment are hindering the progress of the sector, we do believe these headwinds are gradually bottoming out due to the increase in the disposable incomes of urban Indians and easy availability of loans. The burgeoning middle class with high aspirations is fuelling the demand dynamics.”
Speaking about other financial details, he added: “The cash flow from operations continues to remain positive. During the quarter, the Company generated an operational cash flow of Rs 73 crore. We are confident of achieving our guidance for the current fiscal as well.” The Company currently has 38 ongoing residential projects aggregating to 23.50 million sq ft of developable area and 16.51 million sq. ft. of Super Built-up Area, and 42 ongoing contractual projects aggregating to 9.22 million sq ft under various stages of construction.