Bengaluru: Real estate developer SOBHA net profit grew robustly by 22.1 per cent to Rs 61.4 crore for the second quarter of the current financial year as compared to the corresponding quarter in last fiscal, led by strong EBITDA margin expansion.The firms topline grew by 1.9 per cent y-o-y to Rs 658.7 crore in Q2 of FY 19, led by 78.0 per cent Y-o-y growth in revenues from contractual division.
However, its real estate revenues de-grew 21.8 per cent y-o-y to | 385.5 crore (our estimate: | 499.7 crore)We continue to maintain the growth momentum with our second quarter performance despite the impact of recent floods in the Kerala market.
While Bengaluru, our principal market has once again performed well, the second quarter sales volume of Gurugram market is the highest in the last 23 quarters.
This highlights that the demand across all markets and segments is improving steadily.
We are hopeful of strengthening our performance further with new project launches across Bengaluru, Thrissur, Pune and Kochi, J.C.
Sharma, Vice Chairman and Managing Director, SOBHA.In Q2FY19, SOBHAs sales volumes grew 19.7 per cent Y-o-y to 10.3 lsf with sales value of Rs 740.8 crore.
Furthermore, the Bengaluru market remained strong with sales volumes of 7.0 lsf in Q2 FY19 vs.
6.1 lsf in Q2 FY18.As the Indian real sector enters the consolidation phase at the back of progressive reforms, we are witnessing the emergence of a stable, transparent and accountable eco system that will help drive home buyer sentiments going forward, said Sharma.
The company also generated net operational cash flow of Rs 23.8 crore in Q2 FY19.
Its borrowing cost has also come down to 9.30 per cent in Q2 FY19 from 9.31 per cent in Q1 FY19.Net debt for SOBHA stands at Rs 2365.2 crore, while Net D/E ratio for the company stands at 0.83 as of Q2 FY19.