Sobha Developers Ltd's Q3FY19 consolidated net profit rises 30.7% yoy to Rs69.80cr: Beats Estimates

The company’s consolidated revenue in the quarter stood at Rs787.90cr, up 13.9% yoy and 19.61% qoq.

Feb 05, 2019 07:02 IST India Infoline Research Team

Sobha Developers Ltd Q3FY19

Consolidated Results Q3FY19: (in Rs cr)

Q3FY19 YoY (%)
Revenue 787.90 13.9
EBITDA 159 15.6
EBITDA Margin (%) 20.2 31
Net Profit (adjusted) 69.80 30.7
***EBITDA margin change is bps
Sobha Ltd’s financial numbers in Q3FY19 were much better than the street estimates. Consolidated revenue increased 13.9% yoy to Rs787.9cr as compared to Rs691.9cr in Q3FY18, beating the street estimates by 16%. EBITDA increased 15.6% yoy to Rs159cr in Q3FY19 vs. Rs137.5cr in Q3FY18, 11.1% ahead of the estimates. EBITDA margin for the current quarter stood at 20.2%, up 31bps from 19.9% in Q3FY18. Bottomline saw strong growth of 30.7% yoy to Rs69.8cr against Rs53.4cr in Q3FY18, beating the estimates by 16.1%.
  • Consolidate sales comprised two categories – Real Estate Operations (62% of sales mix) and Contracts & Manufacturing (38% of sales mix). Sales growth from real estate business was stable at Rs502.9cr for the current quarter, however, contract manufacturing witnessed a strong growth of 36.4% yoy to Rs310.8cr (vs. Rs227.8cr in Q3FY18).
  • Operating performance was mainly led by healthy growth in the topline further supported by rational operating expenses (up 13% yoy to Rs698.1cr).
  • Bottomline’s stellar performance was largely attributed to strong operating performance.
  • The company, as on December 31, 2018, has 39.09mn sq. ft. of residential and 8.89mn sq. ft. of developable area. Total land bank stood 2,444 acres at the end of the said period.
  • Net debt on the company stood at Rs2,400cr at the close of December quarter of FY19. Debt to equity (AS-115) was 1.13:1
  • Average cost of borrowing was 9.57% for the quarter.

Technical View:

Sobha Ltd ended at Rs470.25, down 7.05 points, or 1.48%, from its previous close of Rs477.30 on the BSE. The scrip opened at Rs481.95 and touched a high and low of Rs483.90 and Rs470.25, respectively. A total of 1,31,601 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200-DMA.

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