Sobha Developers Q1 net profit may jump 28% to Rs 57.8 cr

Moneycontrol Bureau

Bangalore-based real estate firm Sobha Developers will declare its first quarter earnings today. Analysts on an average expect profit after tax to grow by 28.4 percent year-on-year to Rs 57.8 crore on better operational performance, according to a CNBC-TV18 poll.

Revenues are seen going up by 23.5 percent on yearly basis to Rs 535 crore on the back of strong project sales, but sequentially sales may be subdued.

Earnings before interest, tax, depreciation & amortisation (EBITDA) may rise 22.7 percent Y-o-Y to Rs 147 crore and operating profit margin is likely to be flat at 27.5 percent in April-June quarter as against 27.7 percent in a year ago period.

Sobha achieved its best ever sales realisations in first quarter at Rs 6548 per square feet, up 14.1 percent year-on-year and 4 percent quarter-on-quarter, which was better than FY13 average realisation at Rs 5,897 per square feet as against Rs 5,181 per square feet (up 13.8 percent).

Operations improved significantly Y-o-Y in Q1FY14 especially in Bangalore, Chennai and Trichur while NCR market witnessed dip in sales during the quarter.

The real estate company achieved new sales of 9.2 lakh square feet in Q1 as against 8.35 lakh square feet, up 10 percent Y-o-Y (down 14 percent Q-o-Q).

What to expect:

The company had one plotted launch in Bengaluru - Sobha Landscape, which is the second phase of previously launched project, Sobha Canvas.

It has also commenced construction of its commercial property at St Marks road, Bengaluru.

The Indraprastha project launched in March is also expected to contribute to sales in first quarter.

Sobha has been able to sell from its existing inventory in October-March period of FY13, which augurs well and sets a base for aggressive launches in FY14.