Sobha Developers Q2 net profit moves to Rs 589 mn

The company has posted a net profit of Rs 275 million in the second quarter last fiscal, a release said here today.

The company's revenue grew to Rs 4,313 million as compared to Rs 2,263 million in the second quarter, up by 91 per cent

In terms of half-yearly, revenues grew to Rs 7,503 million up by 85 percent compared to first half of last fiscal. Net profit grew to Rs 932 million, compared to Rs 402 million last fiscal, up by 132 percent.

The company sold 744,678 square feet in Q2 FY 2010-11, volume up 90 per cent from Q2 FY 2009-10.

The company in the 2nd Quarter of FY 2010-11 sold 744,678 sq ft as compared to 392,022 sq ft in the same period of FY 2009-10, volume was up by 90 per cent. The company in the 1st Half of FY 2010-11 sold 1,415,561 sq ft of area, as compared to 642,407 sq ft.

J C Sharma, Managing Director, Sobha Developers Limited, said: "The performance of the last two quarters clearly show that demand is back into the market. Not only has our sales increased but we have also been able to launch two new projects. Also we have done a select price increase in some of our projects."

"Also during the 2nd quarter we have succeeded in monetising land for Rs 1,140 Million. With this we hope to achieve our projected land monetisation of Rs 2000 Million for the current financial year.

"On the contractual front, which is our other vertical, we have seen a growth of about five per cent compared to the 1st quarter of the current financial year and 100% jump during the current quarter compared to the corresponding period of the previous year and a jump of 75 per cent in the top line during 1st Half compared to the corresponding period of the last year," Sharma said.

Elaborating on the company's growth plans Sharma said "There would about 6.48 million sq ft of new launches this year. Currently Sobha has ongoing projects in Bangalore, Thrissur, Coimbatore and Pune. Apart from these four cities, we have planned to launch our projects in Gurgaon and Chennai in the current fiscal."