Companies

Sobha profit up 9.12%

Bengaluru | Updated on November 08, 2019 Published on November 08, 2019

Sobha Ltd posted 9.12 per cent higher profit of ₹67 crore on consolidated basis for the second quarter of the current fiscal against ₹61.4 crore in the same period last year.

The company’s income rose 18.87 per cent to ₹803.8 crore (₹676.2 crore). EPS for the quarter stood at ₹7.07 compared with ₹6.47 last year.

JC Sharma, Vice-Chairman and Managing Director, Sobha Limited, said, “The company has done well in Q2. The debt-equity ratio as on September 19 stands at 1.29 and our cost of borrowings stands at 9.81per cent. The Q2-20 has witnessed a good performance by our contracts and manufacturing verticals also. The revenues grew by 30 per cent as compared to Q2-19. Cash flows and order book remains healthy, offering good visibility for the future.”

Sharma said: “Despite the government’s efforts for revival of the real estate sector, overall customer sentiments have not improved as expected. Liquidity situation remains tight in the sector, resulting in cash flow issues for developers. The benefit of 5 consecutive rate cuts by RBI is yet to be passed on to the borrowers by banks/financial institutions, as the banks are still struggling with their non-performing assets (NPAs) and other issues. Hence, they are reluctant to pass on the rate cut benefit to the borrowers.”

Published on November 08, 2019
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