Realty major Sobha Developers Ltd., on a consolidated basis, has registered a turnover of Rs. 4.35bn for the 1st Quarter of FY 2012-13, which ended on June 30, 2012. The profit before tax stood at Rs. 696mn, and the profit after tax came at Rs. 449mn on a consolidated basis. The revenue has increased by 57% and both the PBT and the PAT have also increased by 67% and 73% respectively, Yr on Yr.
The Company during the quarter sold 8,35,600 sq. ft. compared to 6,65,659 sq. ft. in the corresponding period of last year. The average sales price realisation has also improved to Rs. 5,737 per sq. ft. as compared to Rs. 4,547 in the year-ago period.
During this quarter, Sobha has successfully launched a new villa project, Sobha West Hill, in Coimbatore with a total SBA of 1,47,715 sq. ft.
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 that 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.”
“On the contractual side, we have completed and handed over 1.17 million sq. ft. during the first quarter of FY 2012-13. We have a clear visibility for the next three years and we hope to maintain the growth momentum in this vertical too,” added Mr. Sharma.
Speaking about other financial details, Mr. Sharma stated, “The cash flow from operations continues to remain positive. During the quarter, the Company generated an operational cash flow of Rs. 730 Million. We are confident of achieving our guidance for the current fiscal as well.”
Sobha’s superior quality execution capability is its core strength. As of June 30, 2012, in the past 17 years since its inception, Sobha has completed 80 real estate projects and 216 contractual projects covering about 52.98 million sq. ft. of area.
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.
Sobha has made a footprint in 22 cities and 13 states across India. The Company has its real estate presence in seven cities viz. Bangalore, Gurgaon, Chennai, Pune, Coimbatore, Thrissur and Mysore.
Changes in Board
As part of the succession plan, Mr. P.N.C. Menon, the founder Chairman of Sobha Developers Ltd., who has led the Company from the front for over 17 years, has been appointed the Chairman Emeritus. His son, Mr. Ravi Menon, who was the Co-Chairman, succeeded him as the Chairman of the Company with effect from June 30, 2012.
After his phenomenal success in the Middle East, Mr. P.N.C. Menon entered the Indian real estate market which was in dire need of quality construction. He founded Sobha Developers in 1995 with Bangalore as its headquarters. The Company has built its foundation on international quality standards and value systems and has created an unparalleled name in the Indian real estate sector.
Mr. Ravi Menon, 31, graduated with distinction in Civil Engineering from Purdue University, USA. His primary focus has been to maintain and enhance the overall product delivery and has been mainly instrumental in making Sobha the most trusted brand in the Indian real estate and construction industry. In a short span of eight years, he has contributed immensely to corporate strategy, diversification of product lines and entry into new territories.
Pursuant to the aforesaid Board level changes, Sobha Developers Limited will now be under the leadership of Mr. Ravi Menon, Chairman, and Mr. J.C. Sharma, Vice Chairman and Managing Director, with Mr. P.N.C. Menon, the founder and Chairman Emeritus, who will provide strategic guidance and support.