Sobha Developers stands tall
Sobha Developers is up over 5% at Rs 307 on BSE, after the Bangalore-based real estate developer said that it is on-track to meet its FY14 guidance, based on its real estate performance for the first six months ended 30th September 2013.
At the beginning of FY14, company had guided FY14 new sales of 42 lakh sq. feet for the year valued at Rs. 2,600 crore. Of this, it has already achieved sales of 19 lakh sq. feet valued at Rs. 1,235 crore till H1FY14, on higher than expected average price realization of Rs. 6,420 per sq. feet in H1FY14, as against a guided realization of close to Rs. 6,180 per sq. feet.
Company has been doing well in its core Bangalore market, which saw sales of 6.7 lakh sq. feet in Q2FY14, up 12% QoQ. Company’s second largest market in terms of saleable area, Thrissur, saw sale of of 2.5 lakh sq. feet in H1FY14 as against 3.4 lakh sq. feet in FY13. Also, new entry into Kerala’s Kozhikode market has been encouraging due to increasing NRI buying.
For FY13, company reported consolidated sales of Rs. 1,865 crore and net profit of Rs. 217 crore with EPS of Rs. 22.15. For Q1FY14, sales and net profit stood at Rs. 461 crore and Rs. 50 crore respectively.
Despite interest rates tightening and slow down fears looming large, the company has been able to deliver which is what the market is giving a thumps-up to.