Having reached a comfortable net debt-to-equity ratio, Bengaluru-based real estate firm Sobha now aims to accelerate construction for quicker project completions and to allocate more resources towards new opportunities.
The company has reduced its debt by ₹1,800 crore over the last 14 quarters. Cash flows have also improved, helping the company achieve its net debt target of 0.5 times
"We think we will have enough cash flow to invest in new opportunities across geographies," said Jagadish Nangineni, the company's Managing Director.
Sobha plans to launch at least nine million square feet across 10 to 11 projects in Bengaluru, Gurugram, Tamil Nadu, and Kerala during April-March 2024-25.
The company delivered about seven million square feet of real estate, highest in its history, in the last financial year.
About 50 to 60% of the planned launches this year will be in Bengaluru, and the rest spread across the other regions.
The company's January-March net profit declined 86%
Nangineni said that margins have been slightly lower in the past year. But the company has about ₹13,500 crore to be recognised from past sales and aims to achieve much higher margins of 25 to 30% at the project level.
As these projects are completed and recognised, Sobha expects margins to improve significantly.
During the fourth quarter, Sobha launched four new residential projects with total sales value was at ₹1,504 crore, an increase of 3% year-on-year. Bengaluru contributed close to 78% to overall sales value.
The total debt was around ₹1,260 crore.
Last year, Sobha made net investments of over ₹450 crore and expects to maintain this level of investment in the coming years.
The company, which has a market capitalisation of ₹16,487.53 crore, has seen its shares gain 236% over the last year.
The company has reduced its debt by ₹1,800 crore over the last 14 quarters. Cash flows have also improved, helping the company achieve its net debt target of 0.5 times
"We think we will have enough cash flow to invest in new opportunities across geographies," said Jagadish Nangineni, the company's Managing Director.
Sobha plans to launch at least nine million square feet across 10 to 11 projects in Bengaluru, Gurugram, Tamil Nadu, and Kerala during April-March 2024-25.
The company delivered about seven million square feet of real estate, highest in its history, in the last financial year.
About 50 to 60% of the planned launches this year will be in Bengaluru, and the rest spread across the other regions.
The company's January-March net profit declined 86%
to ₹7 crore on lower income.
Nangineni said that margins have been slightly lower in the past year. But the company has about ₹13,500 crore to be recognised from past sales and aims to achieve much higher margins of 25 to 30% at the project level.
As these projects are completed and recognised, Sobha expects margins to improve significantly.
During the fourth quarter, Sobha launched four new residential projects with total sales value was at ₹1,504 crore, an increase of 3% year-on-year. Bengaluru contributed close to 78% to overall sales value.
The total debt was around ₹1,260 crore.
Last year, Sobha made net investments of over ₹450 crore and expects to maintain this level of investment in the coming years.
The company, which has a market capitalisation of ₹16,487.53 crore, has seen its shares gain 236% over the last year.
(Edited by : Vrushali Sawant)
First Published: May 21, 2024 10:55 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!