Bangalore-based real estate company, Sobha Developers has posted a 27.6 per cent drop in its net profit to Rs 40.2 crore in the fourth quarter of last financial year as compared with Rs 55.6 crore reported previous year.
This drop in net profit is due to the absence of land monetisation during the fourth quarter of FY11 as compared with Rs 124 crore of revenue from land sale in the corresponding period last year.Revenue of the company dropped by 13.4 per cent to Rs 349 crore as compared with Rs 403 crore reported an year earlier.
Operating profit dropped by 17 per cent to Rs 74.2 crore during this period as compared with Rs 89.5 crore reported in an year ago period.
“If we don’t take into account the revenue from land sale in the fourth quarter of FY10, then the company has shown a 30 per cent growth in real estate operation and 36 per cent growth in contracting activity during January-March period of last financial year,” J C Sharma, managing director of Sobha Developers said.
On an annual basis, Sobha Developers posted a 34 per cent increase in its net profit to Rs 182.5 crore in FY11 as compared with Rs 136.7 crore reported earlier.
Total income of the company increased by 31 per cent to Rs 1,464.3 crore in the last financial year. Similarly, operating profit of the developer rose by 35.75 per cent to Rs 278.3 crore as compared with Rs 205 crore reported earlier.
“We have recorded a sales volume of more than Rs 1,000 crore in the current financial year along with an average sales realisation of more than Rs 4,000 per sq ft in the last financial year,” Sharma said.
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He also said that the company was expecting to increase its average sales realisation number to Rs 4,300 to Rs 4,500 per sq ft in the current fiscal.
During last fiscal, Sobha Developers has drawn 71 per cent income from core real estate operation and rest from contractual and other sources.
The company, which has launched 4.30 million sq ft of residential space in FY11, is planning to launch 11 million sq ft in the current financial year. It will also enter new territories namely National Capital Region (NCR), Mysore and Chennai in the current fiscal.
In the contractual business front, Sharma said that the company had bagged Rs 132 crore of contractual project other than Infosys in the last two quarters.
By the end of March, 2011, company’s net debt level has also decreased due to higher repayment.
“The company’s net debt ,which was Rs 1,374 crore at the beginning of FY11, has been brought down to Rs 1,183 crore by the end of same period. The debt-equity ratio, which stood at 0.63 crore in the last fiscal, is expected to come down to 0.5-0.6 in the current financial year,” Sharma said.
Share price of Sobha Developers was up by 1.5 per cent to close at Rs 277.50 on BSE on Tuesday.