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Our Bureau

Bangalore, Oct. 31 Increase in interest costs brought down the net profits for Sobha Developers Ltd by about 13 per cent to Rs 49 crore for the second quarter of financial year 2008-09 from Rs 56.2 core for the corresponding quarter last year.

Interest costs have more than doubled in this period to Rs 28.5 crore (Rs 13.3 crore).

However, a reduction in expenditure and increase in the company’s share of profits from a subsidiary increased its profit before interest and exceptional items for the quarter by 6.5 per cent to Rs 86.6 crore (Rs 81.3 crore).

The company’s profit from operations for the period was also up by 7 per cent to Rs 84.7 crore (Rs 79.2 crore).

Mr J.C. Sharma, Managing Director, Sobha Developers, said that the company currently has about 12 million sq ft under construction. “It has been a challenging year for the real estate sector, which faces increased accountability. With the softening of interest rates, the possibility of inflation stabilising, the high per capita income of our prospective customers, and ensuing liquidity, consumers will be more confident about their investment,” he added in a press release.

The company recorded a 3 per cent growth in net profit during the first half of the current financial year at Rs 99.5 crore from Rs 97 crore in the same period last year. Its turnover also marked 8.3 per cent increase to Rs 648.3 crore (Rs 598.7 crore).

The operating margins for this period were at 30.6 per cent (26.5 per cent).

As of September 30, 2008, the company has completed 44 residential/commercial in-house projects and 124 contractual projects covering about 14.93 million sq ft. The company has approximately 10.84 million sq ft under construction for Infosys. It has 30 residential/commercial ongoing projects.

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