Sobha Developers Limited declared its Audited Financial results for the year ended March 31, 2011 and for the 4th quarter ended March 2011, at its Board meeting held in Bangalore. For the FY 2010-11, the Company registered a turnover of Rs.14,643mn compared to Rs.11,193mn in 2009-10, up 31%. The Profit before tax stood at Rs.2,436 Million compared to Rs.1,603 Million in FY 2009-10, up 52%. The Profit after tax stood at Rs.1,825mn compared to Rs.1,367mn in 2009-10, up 34%.
For the 4th Quarter ended March 31, 2011, the Company clocked a turnover of Rs.3,491mn, Profit before tax of Rs.535mn and Profit after tax of Rs.402mn. A significant point to note here is that there was no monetization of any land / development rights in Q4 of FY 2010-11 as against Rs.1240mn in Q4 of FY 2009-10. As such the company showed a growth of 30% on Real Estate operation and 36% on contracting activity with reference to the corresponding quarter in the last Financial Year.
The Company in FY 2010-11 sold 2.78 Million sq. ft. which is higher than the volumes achieved during last Financial Year (2.08 million sq. ft.), a growth of 33%. Based on the impressive performance the board has recommended a dividend of Rs.3/- per share.
Commenting on the results, J C Sharma, Managing Director, Sobha Developers Limited, said, “It is indeed gratifying to note that in spite of the prevailing challenging environment, Sobha Developers has demonstrated its pivotal position in the Real Estate Industry by registering record revenue arising out of its sales volume growth in both residential and contractual business and the product mix offered. The sales realization has moved above Rs.4,000/- per sq. ft. in FY 2010-11. The FY 2010-11 is the best ever performance year for the company.”
The Company in FY 2010-11, completed and delivered 11 residential projects aggregating to 4.12 Million sq. ft. In addition, 11 new projects were launched, aggregating to 4.30 Million sq. ft. During the same time, the Company has completed 25 Contractual projects aggregating to 2.25 Million sq. ft.
Speaking about the contractual side of business, J C Sharma, said, “This is our other vertical, and we have done extremely well on this front too. First time during last two quarters, Sobha has bagged fresh contractual orders of about Rs.1,320 Million other than Infosys. Our list of prestigious clients includes ITC, Biocon, Institute of Public Enterprises (IPE), GMR, Robert Bosch, Hotel Leela Ventures and others. Infosys continues to be the biggest ongoing contractual client.
Speaking on operational performance, Sharma stated “The cash flow from operations in all the four quarters of FY 2010-11 remained positive. In FY 2010-11, we generated an overall operational cash flow of Rs.4,144mn. As a result of positive cash flow, we have also been able to reduce our Debt by Rs.1,910mn, higher than our net profit for the year.”
