Sobha Developers surged 5.09% to Rs 323 at 10:28 IST on BSE after consolidated net profit rose 13% to Rs 56.60 crore on 31% growth in revenue to Rs 545 crore in Q2 September 2013 over Q2 September 2012.
The Q2 result was announced after market hours on Wednesday, 6 November 2013.
Meanwhile, the S&P BSE Sensex was up 25.61 points or 0.12% at 20,920.55.
On BSE, 46,000 shares were traded in the counter as against average daily volume of 31,801 shares in the past one quarter.
The stock hit a high of Rs 325 and a low of Rs 314 so far during the day. The stock had hit a 52-week high of Rs 472.40 on 13 February 2013. The stock had hit a 52-week low of Rs 214.10 on 4 September 2013.
The stock had underperformed the market over the past one month till 6 November 2013, sliding 3.58% as compared to the Sensex's 4.92% rise. The scrip had also underperformed the market in the past one quarter, jumping 8.49% as compared to the Sensex's 11.54% rise.
The mid-cap company has equity capital of Rs 98.06 crore. Face value per share is Rs 10.
Commenting on the company's Q2 performance, Mr. J.C. Sharma, Vice Chairman and MD, Sobha Developers said, "Despite the economy growing below 5%, increasing concerns on high interest rates, continuing inflationary pressures and the steep depreciation of Indian Rupee, our performance has been operationally better vis-vis the previous quarter. We have sold 1 million square feet of new space compared to 0.95 million square feet in the same quarter last year. The sales value in Q2 FY 2014 has increased to Rs 632.30 crore from Rs 527.40 crore in Q2 FY 2013. The average price realisation has increased to Rs 6,304 per square feet from Rs 5,575 per square feet a year ago. The unbilled revenue as of 30 September 2013 is Rs 2197 crore on the sales made so far, out of which we expect a minimum of Rs 497 crore to be recognized during the second half of FY 2014. In addition to this, income from new sales will also contribute to the revenue. The company has been able to consistently generate positive cash flows on a quarter on quarter basis for the last 5 quarters. We have generated Rs 136 crore of operational cash in Q2 FY 2014 and Rs 258 crore in the first half of FY 2014. The company has bagged contractual orders worth approximately Rs 220 crore from 4 reputed clients which ensures a healthy pipeline".
Commenting on the company's growth plans, Mr. Sharma said, "There is no denying that the headwinds prevailing in the real estate sector is perturbing. We continue to believe that our superior quality products supported by timely delievery and exemplary customer relationship management will aid in continuous and sustained growth as reflected in the first half of FY 2014 performance".
Mr. Sharma added, "We have scheduled 12.38 million square feet of new launches in our existing markets in the coming three to four quarters. We also plan to enter the Kochi market in Kerala during the financial year. With the help of our existing inventory and the new launches planned in the coming quarters, we are confident that the guidance set for the current financial year will be achieved".
Sobha Developers is a real estate developer. It is primarily focused on residential and contractual projects.
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