Sobha Developers to invest Rs 250cr in Chennai property

Real estate company Sobha Developers today said it will invest Rs 250 crore to develop its property in Chennai.

"We will be launching in new areas. We will be launching in Chennai, where the property will be spread over 1 millionsq ft. The investment cost for this is Rs 250 crore," Sobha Developers Managing Director J C Sharma told reporters on the sidelines of the Real Estate Investment Forum and Business Spaces 2011.

On the company's revenue, he said, "We are expecting Rs 1,500 crore worth of new space sales (in the current fiscal) from Rs 1,100 crore last year."

The firm registered a net profit of Rs 182 crore in FY'11, an increase of 32.85%from Rs 137 crore posted in the year-ago period.

Sobha sold 2.78 million square feet in FY'11 as against 2.08 million square feet in the year-ago period.

The Bangalore-based company said its total debt stood at Rs 1,300 crore and it will repay close to 35% of the same this year. "Our total debt is Rs 1,300 crore. In FY' 12, we have to repay Rs 450 crore."

The debt to equity ratio of the company is 0.65:1, the best it has ever had, Sharma said.

Asked how the company will finance the debt repayment, Sharma said all the necessary provisions were made to fulfil its obligations.