Sobha Developers: Q4FY14 Result Analysis
Waseem Ahmad / 23 May 2014
Bangalore-based Sobha Developers announced its financial results for the fourth quarter ended 31 March, 2014. We give you the highlights of the company's performance.
Sobha Developer's net PAT grew marginally form Rs 217 crore in Mar'13 to Rs 235 crore in Mar'14. Although the absolute numbers increased marginally, the PAT margin declined from 11.64% in Mar'13 to 10.74% in Mar'14. The EPS increased slightly from Rs 22.15 per share to Rs 23.96 per share. On a sequential basis, the PAT was up from Rs 5.81crore to Rs 7.02 crore and EPS was up from Rs 5.92 per share to Rs 7.16 per share. The company has announced annual dividend of Rs 7 per share.
The company has a debt to equity ratio of 0.54x.
The expenditure of the company went up from Rs 137.56 crore in Mar'13 to Rs 164 crore in Mar'14. This was mainly on account of increase in cost of raw material which went up from Rs 10.78 crore in Mar'13 to Rs 17.25 crore in Mar'14 and purchase of project material which went up to Rs 70 crore in the current quartet from Rs 50.45 crore on an yearly basis.
The company's revenue increased from Rs 1870 crore in Mar'13 to Rs 2184 crore in Mar'14.The sales volume was down by 5% on a YoY basis at 3.56 million square feet (msf) in Mar'14 from 3.79 msf in Mar'13. Realization per square feet was up from Rs 5897 in Mar'13 to Rs 6534 in Mar'14. The total value of area sold was up by 6% on an yearly basis, up from Rs 225.94 crore in Mar'13 to Rs 247.30 crore in Mar'14. The company's short term borrowings were up from Rs 1301 crore in Mar'13 to Rs 1299.7 crore in Mar'14. Total salable units stand at 8530 units.
The company has a total debt of Rs 1234.2 crore in Mar'14, marginally down from Rs 1220.9 crore in Mar'13.
Mr. J.C. Sharma, Vice Chairman & MD, in a statement said that the company has genrated highest ever cash flow and cash flows have been positive for the past seven quarters. The company has faced challenges last year due to dampened economic growth and did not receive encouragement to achieve the desired growth. The last year also has been by far the best, as far as collections are concerned, as they were up 33%. Sobha developers has launched four new projects with salable area of 3.57 million square feet. The company has a targeted sale volume of 4 million sq feet, an increase of 11.5% (YoY). It also has a target of Rs 6750 realization per sq feet.
The shares of the company are trading at Rs 448.50, up by 1.45% in today's trading session.
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