Published On: Wed, May 23rd, 2018

SOBHA strengthens its position as a relevant player in the sector

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Bengaluru, May23, 2018: SOBHA Limited today announced the audited financial results for the fourth quarter and the financial year ended on March31, 2018. A brief snap shot of the key operational and financial parameters for the quarter and the financial year 2017-18 is given below:

Q4 2018

  • Revenue at Rs.7.89 billion on a consolidated basis – Best ever quarterly Revenue
  • EBITDA of Rs. 1.56 billion; EBITDA margin at 19.8%
  • PBT at Rs. 907 million; PBT margin at 11.5%
  • PAT at Rs. 654 million; PAT margin at 8.3%
  • Revenue, PBT and PAT are up by 31%, 20% and 40% Y-o-Y respectively
  • Cash inflow of Rs.9.11billion. Highest ever quarterly collection
  • Contracts and Manufacturing collection at Rs.3.13 billion. Highest ever.
  • Net operational cash flow of Rs.1.60billion after interest and tax expenses.
  • Average Cost of Borrowings at 9.39%. Lowest ever.
  • Registered new sales volume of 1.02 million square feet
  • Registered new sales value of Rs.8.12 billion (SOBHA Share of Rs.6.56 billion)
  • Achieved average price realisation of Rs. 7,993 per square feet (SOBHA Share of Rs.6,457 per square feet)

 

FY 2018

  • Revenue at Rs.28.37billion on a consolidated basis, up by 24%
  • EBITDA of Rs. 5.69billion
  • PBT at Rs.3.17billion
  • PAT at Rs.2.16billion, up by 35%
  • Debt-Equity Ratio stood at 0.79 on a consolidated basis
  • Cash inflow of Rs.30.08billion. Highest ever collection.
  • Net operational cash flow of Rs.3.75billion after interest and tax expenses
  • Contracts and Manufacturing collections at Rs.9.15 billion. Highest ever.
  • Registered new sales volume of 3.63 million square feet
  • Registered new sales value of Rs.28.61billion(SOBHA Share of Rs.24.22 billion)
  • Achieved average price realisation of Rs. 7,892 per square feet (SOBHA Share of Rs.6,680 per square feet)
  • Launched 2.52 million square feet of developable area and 1.62 million square feet of saleable area
  • Completed 2.58 million square feet of developed area in Real Estate and 3.22 million square feet of area in Contracts.
  • Board recommends dividend of Rs.7 per equity share of Rs. 10 each

 

SOBHA Limited, on a consolidated basis, registered a turnover of Rs. 7.89 billion during the fourth quarter of the financial year 2017-18. The Profit before Tax (PBT) stood at Rs.907million and the Profit after Tax (PAT) at Rs.654million on a consolidated basis. During the quarter, the Companygenerated net positive operational cash flows of Rs.1.60billion after meeting interest and tax expenses.

For the financial year ended, 31 March, 2018, the Company registered a turnover of Rs. 28.37 billion on a consolidated basis. The Profit before Tax (PBT) stood at Rs. 3.17 billion, and the Profit after Tax (PAT) was Rs. 2.16 billion. The revenues, PBT and PAT were up by 24%, 29% and 35% respectively as compared to the financial year ended March 31, 2017. The debt-equity ratio stood at 0.79 as on March 31, 2018.

In Q4’18, the Company has achieved new sales volume of 1.02 million square feet valued at Rs. 8.12 billion at an average price realisation of Rs. 7,993 per square feet (SOBHA’s share of sales value at Rs. 6.56 billion at an average price realisation of Rs. 6,457 per square feet). Sales volume and values are up by 40% and 31% respectively as compared to the corresponding quarter of last year and are up by 9% and 7.5% as compared to the preceding quarter.

The Company has registered new sales volume of 3.63 million square feet valued at Rs. 28.61 billion with an average price realisation of Rs. 7,892 per square feet at the close of financial year 2017-18 (SOBHA’s share of sales value at Rs. 24.22 billion at an average price realisation of Rs. 6,680 per square feet). Annual sales volume and value are up by 21% and 42% respectively. Additionally, our cash flows for the year have been very robust.

Speaking on the occasion, Mr. J.C. Sharma, Vice Chairman and Managing Director, SOBHA Limited said, “We have witnessed a steady growth in our residential space across all product categories supported by equally strong growth in ourcontracts and manufacturing verticals. Our margins have improved despite operating in a challenging environment. This was made possible primarily due to our ability to deliver projects on the strength of our unique backward integration model. During the year, we also transitioned to an era where both RERA and GST were implemented. SOBHA believes that these are the structural reforms which will pave way for a sustained growth, particularly for our sector and strengthen the economy as we move forward.”

He added,“The momentum as reflected in the current year should continue going forward. SOBHA is also working out various new opportunities. A step in this direction was our foray into the Gujarat’s residential market with GIFT City.”

Exceptional Execution

SOBHA’s superior execution capability is its core strength. Since inception, SOBHA has completed about 92.53 million square feet of area. The Company currently has ongoing real estate projects aggregating to41.90million square feet of developable area and 28.13million square feet of saleable area, and ongoing contractual projects aggregating to 6.35million square feet under various stages of construction. The Company has a real estate presence in 9 cities, viz. Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Calicut, Cochin, and Mysore. Overall, SOBHA has footprint in 27 cities and 13 states across India.

 

Recognition & Awards

Some of the key recognitions in FY 2017-18 are as follows:

  • Declared as the top brand of Indian real estate sector for the 3rd consecutive year by the Brand X Report 2016-17, an annual study conducted by Track2Realty. This has been a rare accomplishment – the first hat-trick of brand leadership by any real estate player in India so far.
  • Won the CREDAI Awards for Real Estate (CARE) 2017 in the category Best CSR Activity by CREDAI Karnataka.
  • Voted as Number 1 choice of homebuyers nationally in Track2Realty’s Consumer Confidence Report 20:20 – one-of-its-kind comprehensive study on consumer psychology about the Indian real estate market. This is the 4th  consecutive year that SOBHA has won top rank in consumer confidence survey, making it an exceptional and a rare feat achieved by any real estate brand in the country.
  • Recognised with ‘The Most Trusted Real Estate Brand’ in South Zone at the 12th CNBCAWAAZ Real Estate Award 2017-18.
  • Conferred with three prestigious awards at the 10th Construction Industry Development Council (CIDC) Vishwakarma Awards 2018 – ‘Best Professionally Managed Company’ (Turnover > INR 1000 crore; ‘Achievement Award for Social Development & Impact’ and ‘Best Construction Projects’ for SOBHA Sapphire, Thrissur, Kerala.

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