Sobha Developer Q1 PAT seen up 65% at Rs 74 cr: Emkay

Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the real estate sector. The brokerage house expects Sobha Developers to report a 6.7 percent growth quarter-on-quarter (rise of 64.8 percent year-on-year) in net profit at Rs 74.1 crore.

Revenues are expected to increase by 3.8 percent Q-o-Q (up 40.6 percent Y-o-Y) to Rs 609.3 crore, according to Emkay Equity Advisory.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 5 percent Q-o-Q (up 42.5 percent Y-o-Y) to Rs 170.7 crore.

EBITDA margin or operating profit margin is likely to be at 28 percent in June quarter as against 27.7 percent in March quarter and 27.7 percent in a year ago period.

Emkay Equity Advisory report on Sobha Developers

Sobha Developers sold 0.92msf in Q1FY14 for Rs 6 billion, which was marginally below our estimate. SDL launched one plotted development project in Bangalore for 0.2msf in Q1FY14.and hence most sales bookings would be from old launches leading to higher revenue bookings, collections and hence operating cash flows.