Sobha Developers Q4 PAT seen up 14.6% QoQ at Rs 45.97 cr

Real estate company Sobha Developers is expected to report a growth of 14.6% quarter-on-quarter in its profit after tax of Rs 45.97 crore for the quarter ended March 2012, according to CNBC-TV18 poll.

Net sales are seen going up by 17% to Rs 364.8 crore from Rs 311.5 crore during the same period.           

EBITDA is likely to go up by 15% to Rs 84.13 crore in fourth quarter of FY12 versus Rs 73.1 crore in the previous quarter, but EBITDA margin is seen declining at 23.1% versus 23.5% during the same period.

Factors to watch:

Operationally good performance in FY12:

Sold 3.28 million square feet of new space valued at Rs 17.01 billion during the financial year ended March 31, 2012 versus 3 million sq. ft. of new sales with expected sales value of Rs 15 billion

During the FY12, the overall price realization improved from Rs 4,082/sqft to Rs 5,181 per square feet, up by 27%

Sales value increased from Rs 11.33 billion to Rs 17.01 billion, up by 50%

Fresh sales volume increased from 2.78 million square feet to 3.28 million square feet, up by 18%

During the Q4FY12, company continued to report strong pre-sales volume owing to its presence in Bengaluru:
**Sold 0.86 million sq ft of new space at a sales value of Rs 4.64 billion with an average price realization of Rs 5380/sq ft and launched 1.83 million square feet of new projects
**Volume have remained robust led by resilient offtake in Bengaluru region
**Strong pre-sales were driven by the launch of new projects of 1.73 million sq ft in Bangalore (0.57 million sq ft), Chennai (0.9 million sq ft) and Coimbatore (0.26 million sq ft)

Easing of Debt: Debt Levels needs to be monitored and stood at roughly Rs 1274 crore

Expect SDL’s net D/E ratio to come down to 0.6 times from the current level of 0.65 times in 4QFY12

Management had guided to reduce debt to 0.55 times but seems unlikely owing to absence of sale of any land parcels