Sobha (SOBHA) Q4 13/14 earnings summary

Executive summary

• FY14 delivered record consolidated revenue of ₹21.84b, PBT of ₹3.70b, profit after minority interest of ₹2.35b, and real estate sales of ₹23.43b.

• Collections reached a record ₹26.89b and net operational cash flow was ₹6.61b; seven consecutive quarters generated operating cash surplus after operating expenditure.

Financial highlights

• Consolidated revenue rose 16% YoY to ₹21,837.63m; EBITDA was ₹6,129.18m, PBT ₹3,704.82m, and profit after minority interest ₹2,350.43m.

• Consolidated EPS was ₹23.97 versus ₹22.15 in FY13; turnover, PBT, and PAT reached reported record levels.

• Real estate new sales totaled ₹23.43b on 3.59m sq. ft.; average price realization was ₹6,534/sq. ft., up 10.8% YoY, while sales value rose 5.78%.

• Collections were ₹26.89b; net operational cash inflow was ₹6,613m after ₹20,277m of operating outflows.

Outlook and guidance

• FY15 sales guidance: ₹27b across ~4m sq. ft., at ₹6,750/sq. ft. average realization; targets are 15% higher by value and 11.5% higher by volume than FY14 performance.

• A pipeline of launches, including projects launched in March 2014, supports expectations for stronger FY15 sales; focus remains on faster execution, receivables monetization, and maintaining debt at optimum levels.

• The 48 ongoing real estate projects were expected to generate positive cash flow exceeding ₹40b; contractual work had a ₹6.9b order book.