Sobha Developers targets Rs 2000cr sales in FY13

In an interview with CNBC-TV18, JC Sharma, VC of Sobha Developers said the company is hopeful about sustaining the current margins and maintains its sales guidance of Rs 2,000 crore for FY13. He further stated that the underlying demand is strong in key markets and this will help them realize their guidance.

The company's debt has gone up by Rs 45 crore in Q1 and they have generated Rs 75 crore FCF in the current quarter, informed Sharma.

Going ahead, Sobha Developers is eyeing strong sales in Gurgaon where realisations are strong at Rs 9000 per sq ft.
 
Here is the edited transcript of the interview on CNBC-TV18.

Q: I am talking to you about your margins for this quarter, whether you feel that you can really sustain this as far as the next fiscal is concerned?

A: Of course yes. We have already considered the input cost increase in all our projects and we do believe that the current margins, which are hovering around 40% in our core real estate operations should be able to sustain going forward as well.

Q: We are looking at your presale figures, they have been very strong this quarter despite being a seasonal weak quarter for real estate companies. What run rate you think you can manage for the next couple of quarters?

A: We believe that the underlying demand in our markets remain quite strong. We have already given a guidance that this year we should be doing new sales of Rs 2,000 crore plus. We are confident that we should be able to achieve this target in this financial year like we did in the last financial year and this should also get reflected in our P/L account from the third and fourth quarters.