Sobha (SOBHA) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 turnover reached Rs 6,284.34 million, up 35% YoY; PBT rose 120% to Rs 1,067.24 million and PAT to Rs 884.84 million.

• More than 2,300 apartments were sold and 3.9 million sq. ft. of construction delivered during the year.

Financial highlights

• Sales and contractual income was Rs 5,966.15 million vs Rs 4,530.64 million; other income was Rs 318.19 million vs Rs 121.22 million.

• PAT was Rs 884.84 million vs Rs 346.50 million; EPS was Rs 41.53 vs Rs 16.41.

• PBT was Rs 1,067.24 million vs Rs 485.03 million; reported tax provision was Rs 182.40 million vs Rs 138.53 million.

• Work in progress increased to Rs 2,527.92 million from Rs 1,896.32 million; total inventories reached Rs 2,543.96 million.

Outlook and guidance

• FY 2005-06 launches added over 4 million sq. ft.; these projects were expected to contribute over Rs 11,000 million to top line over the following two years.

• Delivery capacity was being scaled to over 8 million sq. ft. in the ensuing year; contractual work was expected to exceed 10 million sq. ft. over two years.

• IPO planned for 2006-07 to fund land procurement, development and construction; listing on leading Indian exchanges was expected during the year.

• A mall project was expected to require over Rs 5,000 million over three years and become operational in 2008-09.