Sobha (SOBHA) Q4 08/09 earnings summary

Executive summary

• FY09 performance weakened sharply amid the recession and property-buying delays; total income fell 30.95% YoY and PAT declined 51.95%.�

• Positive operating cash flow, debt rescheduling, cost controls and stronger contractual work helped maintain project execution through the downturn.�

Financial highlights

• Total income was ₹9,917.05 million vs ₹14,362.77 million in FY08; net income (PAT) was ₹1,096.78 million vs ₹2,283.01 million.�

• PBDIT was ₹2,867.70 million vs ₹3,674.11 million; PBT was ₹1,455.23 million vs ₹2,708.79 million.�

• EPS was ₹15.04 vs ₹31.32; proposed dividend was ₹1 per ₹10 equity share, a 10% rate.�

Outlook and guidance

• Management expected a market resurgence in 2010, citing improved liquidity, lower interest rates and anticipated policy support; this was an expectation, not formal guidance.�

• Planned 24 project launches totaling 17.53 million sq. ft.; focus included affordable housing, tailored projects, plotted land sales and faster land-bank conversion.�

• Funding initiatives included land and development-rights sales, project-level investment and promoter-stake dilution; management expected adequate cash in 6–9 months.�