SOBHA Q1 net profit up by 70% at INR 91 crore

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Bengaluru continues to be the strong buyer base and has achieved the new sales booking of 0.74 million square feet.

SOBHA Limited announced unaudited financial results for the quarter ended June30, 2019. A brief snap shot of the key financial and operational parameters for the quarterended June 30, 2019is given below:

Q1-20-FINANCIAL HIGHLIGHTS

• Total Income at Rs 11.93 billion.The same is up by 96% as compared to Q1-19.
• Real Estate Revenue at Rs. 8.45 billion, which is up by 135% as compared to Q1-19.
• Contracts and Manufacturing Revenue at Rs. 3.32 billion. The same is up by 39% as compared to Q1-19.
• EBITDA at Rs. 2.44 billion. The same is up by 71% as compared to Q1-19. Margin at 20%
• PBT at Rs. 1.42 billion. The same is up by 92% as compared to Q1-19. Margin at 12%.
• PAT at Rs. 0.91 Billion. The same is up by 70% as compared to Q1-19. Margin at 8%.
• CRISIL and ICRA reaffirmed our long term credit rating at A+ (Stable)
• Debt – Equity Ratio as on June-19 stands at 1.19 as compared to 1.09 as on Mar-19.
• Cost of borrowings stands at 9.80%.

Q1-20 OPERATIONAL HIGHLIGHTS

• Achieved pre sales volume of 1.06 million square feet during the quarter.The same up by 11%as compared to Q1-19.
• Total sales value stands at Rs 7.78billion.The same is up by 2% as compared to Q1-19.
• SOBHA Share of sales value at Rs 6.61 billion, up by 8% as compared to Q1-19.
• Total average price realisation stands at Rs. 7,312 per square feet.
• Bengaluru continues to be the strong buyer base and has achieved the new sales booking of 0.74 million square feet.
• During the quarter,the company has launched SOBHA Nesara, a super luxury apartment project in Pune, with saleable area of 0.51 million square feet and SOBHA Verdure, an exclusively designed row houses project in Coimbatore, with saleable area of 0.10 million square feet. In total, SOBHAhas launched 0.61 million square feet of projects during the first quarter of this financial year.
• New residential projects to the tune of 10.65 million square feet will be launched in Bengaluru, Gurugram, Delhi, Hosur, Chennai, Thrissur and Hyderabad in the coming quarters.
• Total cash inflow at Rs 8.01 billion.The same is up by9%as compared to Q1-19.
• Real Estate cash inflow stands Rs 5.21 billion.The same is up by 4% as compared to Q1-19.
• Contractual and manufacturing cash inflow is at Rs. 2.80 billion.The same is up by 20%as compared to Q1-19.
• Contracts andmanufacturing order book stands at Rs. 22.33 Billion.

Speaking on the occasion, J.C. Sharma, Vice Chairman and Managing Director, SOBHA Limited said, “The momentum gathered during FY18-19 continued in Q1-20. This hashelped the company to perform well on operational and financial parameters despite tough macro-economic and industry environment.We remain focussed on execution of ongoing real esate and contractual projects, resulting in topline of Rs.11.93 billion for Q1-20 and PAT of Rs.0.91 billion, up by 96% and 70% as compared to Q1-19 respectively.We have also achieved pre-sales volume of 1.06 million square feet valued at Rs 7.78 billion during the quarter. Total cash inflow for the quarter stands at Rs.8.01billion, which is up by 9% as compared to Q1-19. SOBHA continues to enjoy good long-term credit rating of A+(stable) from CRISIL and ICRA. This further strengthens our financial position in the market.”

SOBHA strongly believes that demand in the residential space will continue to grow as the benefits from the structural reforms begin to show results.It is clearly witnessing signs of consolidation, which will further accelerate in the future. SOBHA,with its unique backward integrated model,proven track record,strong brand, good visibility in contractual business andbusiness de-risking measures, should be in a position to gain market share.The recent 35 bps repo rate cut by RBI is expected to give further impetus to the residential demand,as the EMI for home buyers is likely tocome down along with a reduction in interest cost fordevelopers.The company is also pursuing new opportunities in existing locations as well as in new cities like Hyderabad and Trivandrum. It is also worthwhile to note that SOBHA’s foray in GIFT CITY, Gujarat has been in line with its expectations.

He added “The Q1-20 has also witnessed a good performance by our contracts and manufacturing verticals. The revenues grew by 39% as compared to Q1-19.Cash flows and order book remains healthy, offering good visibility for the future. We have recently won a new contract in Trivandrum worth about Rs. 600 million, adding to growing list of new contracts.”