Sobha posts Rs696 million PBT
Bangalore-based Sobha Developers has registered a turnover of Rs4.35 billion for the first quarter of FY 2012-13, which ended on June 30, 2012. The profit before tax stood at Rs696 million, and the profit after tax came at Rs449 million on a consolidated basis. The revenue has increased by 57 per cent and both the PBT and the PAT have also increased by 67 per cent and 73 per cent respectively, year-on-year.
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 Rs5,737 per sq ft as compared to Rs4,547 in the year-ago period.
During this quarter, the company has 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, JC Sharma, vice chairman and managing director, Sobha Developers, 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 Sharma.
The company currently has 38 ongoing residential projects aggregating to 23.50 million sq ft of developable area, and 42 ongoing contractual projects aggregating to 9.22 million sq ft under various stages of construction.
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, PNC Menon, the founder chairman of Sobha Developers, who has led the company from the front for over 17 years, has been appointed the Chairman Emeritus. His son, Ravi Menon, who was the co-chairman, succeeded him as the chairman of the company with effect from June 30, 2012.