Sobha Developers Q1 PAT seen up 68% at Rs 52 cr

The Bangalore-based Sobha Developers will declare its results for the April-June quarter of financial year 2012-13 today. Analysts on an average expect the profit after tax to grow by 68% year-on-year to Rs 52 crore during the quarter.

Revenues are seen going up by 10% to Rs 350 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to go up by 44% to Rs 90 crore during the same period. Operating profit margin is seen increasing 650 basis points to 26% in the first quarter of FY13 as against 19.5% in a year ago period. Analysts expect strong earnings from Sobha Developers that could surprise positively in the June quarter. Sales momentum was very strong at company's previously launched projects, although new launches were subdued this quarter with only a small villa launch in Coimbatore. Despite it being a seasonally weak quarter, pre-sales has been very strong. The company sold 0.84 million sq ft in first quarter, an increase of 26% YoY; that valued at around Rs 480 crore. Average price realisations increased 26% YoY (up 7% QoQ) to Rs 5737 per sq ft as against Rs 4547 per sq ft due to increased contribution from higher ASP Gurgaon market. Sales break up: Sobha Developers sold 0.52 million sq ft in Bangalore, 0.14 million sq ft in Gurgaon, 0.07 million sq ft in Chennai and the balance 0.07 million sq ft in Thrisur and Pune cities. Analysts feel the company is well on-track to achieve guidance for FY13. It has targetted pre-sales worth Rs 2000 crore and 3.75 million sq ft for FY13. The company is going to launch 4.3 million sqft in several locations in Bangalore, Coimbatore, Pune, and Mysore, over the next 4 quarters. Deleveraging process going well On account of strong launches and monetization of old sales, coupled with a steady execution, the company brought its net debt down from Rs 12,100 crore in FY11 to Rs 11,400 crore in FY12. Analysts expect net debt to reduce to Rs 890 crore in FY13, resulting in a Debt/Equity of 0.56, down from 0.67 in FY11.