Sobha Developers total debt at Rs 1200-1300 cr

Sobha Developers has announced it's Q1 FY09 results. The sales were at Rs 348 crore versus Rs 269 crore.

Key Takeawys from Sobha Developers concall:

EBIDTA margin 29.7 % vs 25.5%

Margin in contract 15% vvary from QoQ

Real Estate margins 45%

10.3 mn under execution

5 numbers of projects we have; which considered Rs 200 crore

Right issue: it will use for land bank and for construction

Companies may face challenges ahead to maintain volumes at current levels

The average interest cost remains below 12%

The company will be able to bring down their debt-to-equity ratio to 1.5:1, currently at 1.8

The Company has got good projects. Company will be launching new projects in new cities and feel that with the new launches and existing projects, should be able to do well.

Total Debt at Rs 1200-1300 crore as March ’08.

Debt increase due to land acquirement and tax

Rights issue is of Rs 350 crore

Issue on pricing of rights issue is not yet finalised

Company wants to make room for further expansion

There was reasonable amount of growth last year

The land acquired by the company has been paid off

However, there is a commitment of around Rs 90-100 Cr towards the payment for land this year

Average interest outgo is at 12%

For more details, listen to concall...