Shobha Developers Q3 net profit up 11%

BANGALORE: Bangalore-based real estate company, Sobha Developers, net profit for the third quarter grew 11 per cent to Rs 58.3 crore due to higher sales.

Net sales, however, rose 26.6 per cent from the year-ago quarter to Rs 544.3 crore. “Despite the prevailing economic headwinds and consequently, a muted performance by real estate firms, Sobha has been consistently outperforming with an increase in the top-line and the bottom-line on a year-on-year as well as a quarter-on-quarter basis,” says JC Sharma, Vice Chairman and Managing Director, Sobha DevelopeRs

During the quarter, the company generated Rs 162 crore of operational cash flows compared to Rs 111 crore in the previous year. The unbilled revenue as of December 31, 2013 is Rs 22.64 billion on the sales made so far, out of which we expect a minimum of Rs 3.55 billion to be recognized in the last quarter of FY 13-14. In addition to this, income from new sales will also contribute to the revenue,” says Sharma.

The company sold 0.74 million sq ft of residential space valued at Rs 502 crore in the third quarter of FY14. The average price realisation stood at Rs 6,786 per sq ft.

Sobha plans to launch 11 million square feet of projects in the coming four to five quarters and enter Kochi during this financial year. The company has 45 ongoing residential projects aggregating to 27.32 million square feet of developable area and 34 ongoing contractual projects aggregating to 9.50 million square feet under various stages of construction.

Sobha Developers stock closed at Rs 273.05 up 5.85 per cent on BSE on Monday.