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Real Estate >> News
Highest ever Cash Flows for Sobha in FY 14
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siliconindia
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Monday, May 26, 2014
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Bangalore : Realty major Sobha Developers Limited, on a consolidated basis, registered a turnover of 
6.31 billion during the 4th Quarter of FY 2013-14, which ended on Monday, 31st March, 2014.
The Profit before Tax (PBT) stood at Rs 1.12 billion, and the Profit after Tax (PAT) was Rs 703 million on a consolidated basis. The revenues increased by 7 per cent and both PBT and PAT increased by 8 per cent and 1 per cent respectively, YoY.
Speaking on the occasion, JC Sharma, vice chairman and managing director, Sobha Developers Limited, said, The previous year was filled with challenges for the Indian economy as also the real estate sector. With the economy growing at sub 5 per cent, all the major industries such as manufacturing, services and real estate did not receive the required encouragement to exhibit the desired growth potential. Overall, the Company's performance in the fiscal has been better than the average industry performance. With the conclusion of the general elections, we are optimistic about the new Government and its development plans. The year ahead looks promising and we hope to see the long-pending reforms materialise that will assist in the growth of the Indian economy and our industry.
Elaborating further, JC Sharma stated, "Sobha has been able to consistently generate positive cash flows on a quarter on quarter as well as year on year basis. This financial year has been the best ever for Sobha as far as the collections are concerned. During Q4 of FY 14, the Company generated 2.41 billion of operational cash flows compared to 1.62 billion in the previous quarter. Our cash inflow for FY 14 was 26.89 billion compared to 20.20 billion last year, which is a 33 per cent increase YoY. For the last 7 quarters, we have been able to successfully generate positive cash flows post interest and tax pay-out. We have also been able to generate quarterly net operational cash flow in excess of 1 billion for the last 6 consecutive quarters. Our current debt-equity ratio is 0.54 and our net debt is 12.34 billion."
"In this quarter, we have completed and handed over 2 projects in real estate and 5 projects in contracts aggregating to total area of 1.20 million square feet. During Q4, CARE has given us a rating of A to indicate our financial stability,"added Sharma.
New Launches in Q4 FY 2013-14
During the quarter, Sobha Developers Ltd. launched 4 new projects measuring 3.57 million square feet of saleable area in the southern market, out of which 3 were launched in the second fortnight of March 2014. This quarter, the Company also expanded its operations to a new geography ' Cochin. 'We are pleased to inform you that we have entered the Cochin market and the residents of Kerala's commercial capital will now have access to Sobha's world-class quality products. Sobha Isle is a 1.09 million square feet development in Vyttila,' added Sharma.
Sobha Rio Vista, with a total saleable area of 0.51 million square feet, is the Company's second project in Calicut. The Company also launched 2 new projects in its core market- Bangalore. Sobha Silicon Oasis is a 1.5 million square feet development near Bangalore's IT hub ' Electronic City. It is a unique development designed to provide tropical resort experience to its residents. Sobha Valley View is located in Banashankari and has a total saleable area of 0.49 million square feet.
Growth Plans and Project Launches in the Coming Quarters
Commenting on the future, JC Sharma said, 'The expectations from the new government have positively influenced the market, which has translated to appreciation in the Indian rupee and an upward trend in the capital market. While these positive sentiments are motivating the economy to perform better and push the limits, it may take a few months before the growth in the real estate industry is actually visible. As long as the government's action plans will focus on a progressive economy, we believe that the industry operations will revive in the coming few quarters. We hope that the government will focus on policies that will reduce the burden on the real estate builders by accelerating the approval process, reducing the interest costs and taxes levied and controlling the trending inflationary pressures. Keeping that in mind, we have set our sales guidance during the fiscal at 27 billion in value and 4 million square feet of volume terms which is a 15 per cent increase in sales value and an 11 per cent increase in volume compared to the values achieved in FY 13-14.'
Delineating the Company's growth strategy, Sharma said, 'We are certain that the year ahead will bring positive changes in the economy and support the growth of all the key industries, ours included. We continue to remain optimistic about our key southern markets, which have been contributing significantly to our growth. Our strong delivery pipeline has propelled our growth despite the prevailing headwinds. We have about 10 million square feet of new project launches planned for the coming year in our existing geographies. Our core market ' Bangalore is a resilient real estate market with the demand being end-user driven. This has been mostly due to the availability of land parcels at reasonable rates. Even the investors are looking at Bangalore as a favorable option to generate good returns. The city is also witnessing the growth of new real estate pockets and hence, the scope for development remains high."
Exceptional Execution
Sobha's superior execution capability is its core strength. Since inception, Sobha has completed 92 real estate projects and 247 contractual projects covering about 62.93 million square feet of area. The Company currently has 48 ongoing residential projects aggregating to 30.61 million square feet of developable area and 21.98 million square feet of saleable area, and 31 ongoing contractual projects aggregating to 9.67 million square feet under various stages of construction. The Company has a real estate presence in nine cities, viz. Bangalore, Gurgaon, Chennai, Pune, Coimbatore, Thrissur, Calicut, Cochin and Mysore. Overall, Sobha has a footprint in 24 cities and 13 states across India.
Sources By : sobha Developer
6.31 billion during the 4th Quarter of FY 2013-14, which ended on Monday, 31st March, 2014.
The Profit before Tax (PBT) stood at Rs 1.12 billion, and the Profit after Tax (PAT) was Rs 703 million on a consolidated basis. The revenues increased by 7 per cent and both PBT and PAT increased by 8 per cent and 1 per cent respectively, YoY.
Speaking on the occasion, JC Sharma, vice chairman and managing director, Sobha Developers Limited, said, The previous year was filled with challenges for the Indian economy as also the real estate sector. With the economy growing at sub 5 per cent, all the major industries such as manufacturing, services and real estate did not receive the required encouragement to exhibit the desired growth potential. Overall, the Company's performance in the fiscal has been better than the average industry performance. With the conclusion of the general elections, we are optimistic about the new Government and its development plans. The year ahead looks promising and we hope to see the long-pending reforms materialise that will assist in the growth of the Indian economy and our industry.
Elaborating further, JC Sharma stated, "Sobha has been able to consistently generate positive cash flows on a quarter on quarter as well as year on year basis. This financial year has been the best ever for Sobha as far as the collections are concerned. During Q4 of FY 14, the Company generated 2.41 billion of operational cash flows compared to 1.62 billion in the previous quarter. Our cash inflow for FY 14 was 26.89 billion compared to 20.20 billion last year, which is a 33 per cent increase YoY. For the last 7 quarters, we have been able to successfully generate positive cash flows post interest and tax pay-out. We have also been able to generate quarterly net operational cash flow in excess of 1 billion for the last 6 consecutive quarters. Our current debt-equity ratio is 0.54 and our net debt is 12.34 billion."
"In this quarter, we have completed and handed over 2 projects in real estate and 5 projects in contracts aggregating to total area of 1.20 million square feet. During Q4, CARE has given us a rating of A to indicate our financial stability,"added Sharma.
New Launches in Q4 FY 2013-14
During the quarter, Sobha Developers Ltd. launched 4 new projects measuring 3.57 million square feet of saleable area in the southern market, out of which 3 were launched in the second fortnight of March 2014. This quarter, the Company also expanded its operations to a new geography ' Cochin. 'We are pleased to inform you that we have entered the Cochin market and the residents of Kerala's commercial capital will now have access to Sobha's world-class quality products. Sobha Isle is a 1.09 million square feet development in Vyttila,' added Sharma.
Sobha Rio Vista, with a total saleable area of 0.51 million square feet, is the Company's second project in Calicut. The Company also launched 2 new projects in its core market- Bangalore. Sobha Silicon Oasis is a 1.5 million square feet development near Bangalore's IT hub ' Electronic City. It is a unique development designed to provide tropical resort experience to its residents. Sobha Valley View is located in Banashankari and has a total saleable area of 0.49 million square feet.
Growth Plans and Project Launches in the Coming Quarters
Commenting on the future, JC Sharma said, 'The expectations from the new government have positively influenced the market, which has translated to appreciation in the Indian rupee and an upward trend in the capital market. While these positive sentiments are motivating the economy to perform better and push the limits, it may take a few months before the growth in the real estate industry is actually visible. As long as the government's action plans will focus on a progressive economy, we believe that the industry operations will revive in the coming few quarters. We hope that the government will focus on policies that will reduce the burden on the real estate builders by accelerating the approval process, reducing the interest costs and taxes levied and controlling the trending inflationary pressures. Keeping that in mind, we have set our sales guidance during the fiscal at 27 billion in value and 4 million square feet of volume terms which is a 15 per cent increase in sales value and an 11 per cent increase in volume compared to the values achieved in FY 13-14.'
Delineating the Company's growth strategy, Sharma said, 'We are certain that the year ahead will bring positive changes in the economy and support the growth of all the key industries, ours included. We continue to remain optimistic about our key southern markets, which have been contributing significantly to our growth. Our strong delivery pipeline has propelled our growth despite the prevailing headwinds. We have about 10 million square feet of new project launches planned for the coming year in our existing geographies. Our core market ' Bangalore is a resilient real estate market with the demand being end-user driven. This has been mostly due to the availability of land parcels at reasonable rates. Even the investors are looking at Bangalore as a favorable option to generate good returns. The city is also witnessing the growth of new real estate pockets and hence, the scope for development remains high."
Exceptional Execution
Sobha's superior execution capability is its core strength. Since inception, Sobha has completed 92 real estate projects and 247 contractual projects covering about 62.93 million square feet of area. The Company currently has 48 ongoing residential projects aggregating to 30.61 million square feet of developable area and 21.98 million square feet of saleable area, and 31 ongoing contractual projects aggregating to 9.67 million square feet under various stages of construction. The Company has a real estate presence in nine cities, viz. Bangalore, Gurgaon, Chennai, Pune, Coimbatore, Thrissur, Calicut, Cochin and Mysore. Overall, Sobha has a footprint in 24 cities and 13 states across India.
Sources By : sobha Developer
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