Sobha (SOBHA) Q4 07/08 earnings summary

Executive summary

• FY07/08 revenue reached Rs 14,345 million, up 21% YoY; net profit rose 41% to Rs 2,283 million, setting new records.

• Growth spanned residential development and contractual work; execution covered 18 million+ SFT under way across India, with backward integration positioned as a quality and delivery advantage.

Financial highlights

• Turnover was Rs 14,345 million vs Rs 11,894 million; PBDIT Rs 3,656 million vs Rs 2,596 million; PBT Rs 2,709 million vs Rs 1,866 million.

• PAT increased to Rs 2,283 million from Rs 1,615 million; EPS was Rs 31.32 vs Rs 24.26.

• Total expenditure was Rs 11,636 million; reported revenue from operations net of excise was Rs 14,291 million.

Outlook and guidance

• 2008-09 plans included project launches in Chennai, Kochi, Mysore and NCR, plus expansion into hotels, malls, commercial development, retail home stores and plotted development.

• Existing land bank was estimated to support ~175 million SFT of saleable area over 10 years; no quantified earnings guidance was stated.

• Management expected stable-to-cautious real estate conditions, with moderate regional price corrections, stable capital values and resilient rental demand for quality properties.