Sobha Developers aims to slash debt by 15% in FY12

Real estate firm Sobha Developers aims to cut its net debt by 15.46% to about Rs 1,000 crore by end of FY12 and is looking to launch 11 new projects in the year, a top official said on Tuesday.

"We are aiming to bring it down to Rs 1,000 crore by the end of the year... This would be on improved cash flows and better realisations," Managing Director J C Sharma told Reuters over the telephone.

The Bangalore-based firm's net debt stood at Rs 1,183 crore as on March 31, lower from Rs 1,374 crore a year ago.

Sobha intends to reduce its debt-equity ratio to 0.5-0.6 in FY12 from 0.63 last year, Sharma said.

The realtor will launch around 11 new projects in FY12, primarly in residential space, totalling 11 million sq ft.

"Currently, we are doing about 7 million square feet, and this will add upto 18 million sq ft," Sharma added.

The realtor posted a 32.85% rise in FY11 net profit at Rs 182 crore, compared with Rs 137 crore posted during the same period a year ago.

Sobha sold 2.78 million sq ft in FY11, compared with 2.08 million sq ft sold a year ago and sales realisation rose to Rs 4,082 in FY11 from 2,980 per sq ft the year ago, he said.

Shares of the company, which the street values at Rs 2706 crore, closed up 0.36% at 2769.5 crore a share in a weak Mumbai market.