Poor collection drags Sobha’s Q4 profits

Our Bureau Bengaluru | Updated on June 27, 2020

For the whole year, the company delivered a very strong performance resulting in the highest ever revenue of ₹1,474 crore

Sobha Limited posted 55.25 per cent lower profits at ₹50.70 crore for the fourth quarter (Q4) of FY2019-20 on a consolidated basis, as against ₹113.30 crore posted last year.

The company’s income is also lower by 34.74 per cent to ₹927.60 crore as against ₹1,421.60 crore in the same period last year. EPS for the quarter stood at ₹5.35 compared with ₹11.95 last year.

JC Sharma, Vice Chairman and Managing Director, Sobha Limited, said, “FY2019-20 has been an exciting and a challenging year. As we started FY20 on the back of one of the strongest performances, a gamut of new events unfolded which to a larger extent reversed the benefit of reforms witnessed during the previous 3 to 4 years. Major world economies slipping into recession followed by the unprecedented Covid-19 pandemic have put the largely labour intensive sectors like construction in a tight spot. The pandemic has adversely impacted both human lives and businesses world over.”

Price realisation

During Q4 FY20, the company achieved a total sales volume of 0.91 million square feet valued at ₹695 crore. The total average price realisation showed an upward trend as compared to Q3 FY20, the company saw good sales traction for luxury and super luxury ongoing projects across cities.

The total cash inflow for the quarter stands at ₹945 crore. The company has also generated net operational cash flow of ₹214 crore and net cash flow of ₹0.71 billion during the quarter which has resulted in debt reduction. The company said that they continue to enjoy sufficient liquidity from banks/financial institutions at a lower cost than industry average.

Highest ever revenue

During FY 2019-2020, contractual and manufacturing verticals have delivered a very strong performance resulting in the highest ever revenue of ₹1,474 crore and cash inflow of ₹1,283 crore. The order book remains healthy, which gives good visibility for the company’s future growth.

The company has also achieved the highest ever total sales volume of 4.07 million square feet valued at ₹2,881 crore during FY20. the total cash inflow for FY20 stands all time high at ₹3,647 crore. The company said that it delivered 5.86 million square feet of developable area during FY 2019-2020

Published on June 27, 2020

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