Tag Archives: Sobha Developers-Corporate Office

Indian real estate markets remain optimistic

Posted on by Track2Realty

Sobha Developers-Corporate Office, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty: The Housing Sentiment Index (IIMB MB HIS) assessed by IIM Bangalore and Magicbricks forecasts that homebuyers across 8 of the 10 cities surveyed expect real estate prices to rise over the next six months. The aggregate Housing Sentiment Index (HSI) measured across 10 cities this quarter stood at 108. (An HSI score of 100 suggests the prices would remain static).

This quarter, the IIMB MB HSI buyer index includes two more cities, Ahmedabad and Kolkata, apart from Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore and Chennai.

“The Indian real estate is bound to remain attractive in the medium term with faster growth expected in the Tier II cities. Competitively priced urban pockets such as Noida, where robust supply is backed with a promise of better infrastructure, received a thumbs-up from end users. However, active interest will take another 6-9 months as consumers expect prices to go up only after six months, post the 2014 elections.” explains Sudhir Pai, Business Head, Magicbricks.

Mumbai posted an HSI of 106, turning positive for the first time. Healthy demand from Navi Mumbai and Thane resulted in this gain. Infrastructure developments in Navi Mumbai including the Trans Harbor Link and the proposed Greenfield International Airport are turning this location into an attractive investment option.

Bangalore topped the list of cities with an HSI of 140 witnessing a further 15% jump in HSI from the previous quarter. Strong demand from the IT sectors and comparatively affordable prices make this city an attractive option.

 Hyderabad, with an HSI of 97 witnessed a 4% drop this quarter. The Telangana issue weighed down sentiments in this city.

 The Seller Survey introduced last quarter rose by 5% to 164 this quarter. Of the sellers, 38% are doing so to book profits while 30% want a bigger accommodation. Of the respondents, 24% are looking to sell property in the Rs 20-40 lakh range.

 Key Findings of the Jan-Mar 2014 Report

  •  The National HSI remained positive at 108 and includes 10 cities beginning this quarter
  •  Mumbai witnessed positive HSI of 106 for the first time mainly due to surge in demand in Navi Mumbai
  •  Bangalore, with an HSI of 140, posted a further increase of 15% compared to the previous quarter
  •  The Telangana issue continued to weigh down sentiments in Hyderabad and dragged HSI down to 97, a drop of 4% from the previous quarter
  • The Seller Index witnessed a 5% increase to post an HSI of 164.

Summarizing the findings, Uma Sitaraman, Lead Researcher, IIMB-Century Real Estate Research Initiative (CRERI) stated, “While the average waiting time has dropped to a little over 8 months this quarter, the range-bound increase witnessed across cities and sectors indicate that people are waiting for the election results to make real estate decisions. Clarity will set in based the election results and well after the new Government takes charge.”

Properties in the Rs 20-40 lakh range continue to be preferred with over 30% buyers in this range. Apartments are the preferred housing type with over 70% choosing to buy apartments.


Sobha Developers’ H1’14 shows impressive performance

Posted on by Track2Realty

Sobha Developers-Corporate Office, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty: Sobha Developers, on a consolidated basis, registered a turnover of Rs. 10.08 Billion during the first half of FY 2013-14. The Profit before Tax (PBT) stood at Rs. 1.71 Billion, and the Profit after Tax (PAT) was Rs. 1.07 Billion. On a year-on-year basis, Revenues have increased by 18%, PBT by 21% and PAT by 12% from its operations.

During Q2 of FY14, the Company registered a turnover of Rs. 5.45 Billion on a consolidated basis, up by 31%. PBT increased by 21% YoY to Rs. 863 Million, and PAT by 13% to Rs. 566 Million.

Commenting on the results, J.C. Sharma, Vice Chairman and Managing Director, Sobha Developers, said, “Despite the economy growing below 5%, increasing concerns on high interest rates, continuing inflationary pressures and the steep depreciation of Indian Rupee, our performance has been operationally better vis-à-vis the previous quarter. We have sold 1 million square feet of new space compared to 0.95 million square feet in the same quarter last year. The sales value in Q2’14 has increased to Rs. 6,323 Million from Rs. 5,274 Million in Q2’13. The average price realisation has increased to Rs. 6,304 per square feet from Rs. 5,575 per square feet a year ago.”

Sharma added, “The revenues for the quarter have increased by 31 % YoY while PBT and PAT have increased by 21% and 13% respectively. Our performance in the first half of this financial year has also been credible with revenues increasing by 18% YoY, PBT and PAT by 21% and 12% respectively.”

The unbilled revenue as of 30th September, 2013 is ` 21.97 Billion on the sales made so far, out of which we expect a minimum of ` 4.97 Billion to be recognized during the second half of the financial year. In addition to this, income from new sales will also contribute to the revenue.

“The Company has been able to consistently generate positive cash flows on a quarter on quarter basis for the last 5 quarters. We have generated ` 1.36 Billion of operational cash flows in Q2’14 and ` 2.58 Billion in H1’14,” added Mr. Sharma

On the Contractual front, the Company has bagged contractual orders worth approximately Rs. 2.20 Billion from 4 reputed clients which ensures a healthy pipeline.

New Launches in Q2 FY 2013-14

The Company’s strategic decision to diversify into new markets, backed by its robust launch pipeline, has yielded great results. “We have launched two new projects this quarter with an aggregate Total Saleable Area of 1.13 million square feet. ‘Sobha Palladian’, a 100% FDI compliant project by Sobha Highrise Ventures Private Limited – a joint venture between Sobha Developers Limited and Sun Area Property Partners, is situated on Old Airport Road, Bangalore and has a Total Saleable Area of 0.55 million square feet. ‘Sobha Bela Encosta’, our maiden project in Kozhikode, Kerala, has a Total Saleable Area of 0.58 Million square feet.” said J C Sharma.

Despite the economic challenges, Sobha Developers has recorded an increase in sales value and the sales volume, particularly in its core market – Bangalore. Bangalore market has been particularly resilient to the economic environment. The company received great response for the new launch in the city. Of the 1 million square feet of new sales in the quarter, Bangalore alone has recorded 0.67 Million square feet of sales – a 12% sequential growth and 14% growth QoQ.

“Kerala has emerged as another strong market and is growing at a fast pace. Our launches in Kerala have met with tremendous response. Continued support and increased buying from the NRI community have been driving the sales in this market. The performance of other markets was also stable,” said Mr. J C Sharma.

Growth Plans and Project Launches in the Coming Quarters

Commenting on the Company’s growth plans, J C Sharma said, “There is no denying that the headwinds prevailing in the real estate sector is perturbing. We continue to believe that our superior quality products supported by timely delivery and exemplary customer relationship management will aid in continuous and sustained growth as reflected in the H1’14 performance.”

“We have scheduled 12.38 million square feet of new launches in our existing markets in the coming three to four quarters. We also plan to enter the Kochi market in Kerala during this financial year. With the help of our existing inventory and the new launches planned in the coming quarters, we are confident that the guidance set for the current financial year will be achieved,” said Sharma.