Realty firm Sobha to launch 13.64-million sq ft projects in coming quarters

Sobha Ltd, a Bengaluru-based real estate developer, is set to launch projects to the tune of 13.64 million sq ft in the coming quarters.

“Along with a 13.64 million sq ft development, the company is launching 0.44 million sq ft of commercial projects in Bengaluru,” said JC Sharma, the company’s Vice-Chairman and Managing Director.

The company’s contracts and manufacturing verticals performed well in the first nine months of this fiscal. Revenues grew 25 per cent year-on-year (YoY). “Cash flows and the order book remain healthy, offering good visibility for the future,” said Sharma.

Sobha, with its backward integrated model, brand recall, order book and visibility in contractual business, should be in a position to gain market share in the coming quarters, he added. “Moving forward, our expansion plans across India should further support its operations in the days to come,” he said.

“Superior execution capability is our core strength. The company currently has ongoing real estate projects aggregating to 40.94 million sq ft of developable area and 28.34 million sq ft of saleable area, and ongoing contractual projects aggregating to 10.51 million sq ft under various stages of construction,” said Sharma.

The company has delivered 106.80 million sq ft of developable area as on December 31, 2019, and has a presence in 10 cities — Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gift City (Gujarat) and Mysuru.

Q3 performance

Sobha has posted 4.87 per cent higher profits on a consolidated basis at ₹73.2 crore for the third quarter (Q3) of FY20, against ₹69.8 crore in the previous-year period.

The company’s income is also higher by 11.57 per cent YoY at ₹901.2 crore (₹807.7 crore). EPS for the quarter stood at ₹7.72 (₹7.36).

Budget reaction

“ Budget 2020-21 was around the themes of aspirational India, economic development for all, caring society and ease of living,” noted Sharma. “It is a step towards the growth of the country while taking the economy to the $5-trillion mark.”

“The government reiterated its commitment to the affordable housing segment. Continuing from the announcement made in the last Union Budget, the Finance Minister has proposed to increase the time line of additional deduction of up to ₹1.5 lakh for interest paid on loans taken for an affordable house from the present March 31, 2020 to March 31, 2021,” he added.

“Similarly, it has extended the date of approval of affordable housing projects for availing tax holiday on profits earned by developers from the current March 31, 2020 to March 31, 2021. These announcements will give a significant boost to the affordable housing segment, enabling both home buyers and developers to benefit from it,” he said.