InvestorQ : How do you see the latest results of realty company, Sobha Ltd, for the Mar-20 quarter?
manisha Kolvenkar made post

How do you see the latest results of realty company, Sobha Ltd, for the Mar-20 quarter?

Answer
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Mahima Roy answered.
3 months ago


South based realty major, Sobha Ltd, reported a marginal 5% fall in net profit at Rs.282 crore for the full fiscal year 2019-20. However, the positive takeaway for Sobha was that it managed to achieve strong sales bookings of Rs.2881 crore. Total income from operations was nearly 10% higher for Sobha at Rs.3826 crore for the full fiscal year.

The impact on profits was much sharper in the fourth quarter with net profits more than halving to Rs.50.7 crore. The impact was clearly a lag effect of weak demand, tepid consumption scenario, unwillingness to commit long term funds to realty ventures and also due to the tight liquidity and funding scenario in India. Total income in March quarter also dipped almost 35% to Rs.928 crore.

Sobha reported total sales volume of 4.07 million square feet valued during FY20, an all time record for the company. It delivered 5.86 million square feet of developable area during 2019-20. The good news is that the cash inflow for FY20 stood at all-time high of Rs.3647 crore. Construction sector has also taken a hit on account of labour shortage.

In the current context, Sobha has ongoing real estate projects totalling up to 39.36 million square feet of developable area and 27.41 million square feet of saleable area. In addition, Sobha also has ongoing contractual projects worth up to 9.44 million square feet. The company has till date, delivered 109.74 million square feet of developable area. Its presence continues to dominate in the South and the results should be pleasing for Sobha.