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Lower than expected sales in real estate projects have impacted Sobha Ltd’s profit for the second quarter (Q2) of 2015-16 on a consolidated basis. The company’s profit has dropped by 32.60 per cent to ₹40.10 crore compared with ₹59.50 crore recorded in the same period last year.
The company’s income from operations is also lower by 32.60 per cent to ₹456.10 crore against ₹676.80 crore in the same period last year. EPS for Q2 stood at ₹4.09 against ₹6.02 last year.
The debt levels have stabilised and debt-equity stands at 0.83 as at the end of the quarter.
Commenting on the company’s performance, JC Sharma, Vice-Chairman and Managing Director, said: “During the quarter, the contribution from contractual and manufacturing operations was relatively higher. However, the sales in real estate projects which have reached the revenue recognition threshold were lower than expected, resulting in a low-key financial performance.”
“On the positive side, the cash flows have shown improvement and the company has generated positive net operational cash flows of ₹143.10 crore during the quarter,” he added.
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