Bangalore: Banks and financial institutions, which lent close to Rs 1,900 crore to Sobha Developers Ltd, have agreed to reschedule part of the debt.
Sobha Developers' managing director J C Shama said, "The company has managed to reschedule a substantial part of its loan portfolio." However, he did not elaborate. "Almost all the financial institutions have realigned our loans and our target is to bring down the debt to equity ratio of 0.5 by this fiscal from the current 0.85," he added. Of the total debt of Rs 1,900 crore, the Bangalore-based real estate developer will be able to repay Rs 1,130 crore on easier timelines.
Sobha has also refinanced/ rescheduled its near-term debt to match expected cash flows. The realty major is currently paying an average rate of interest of around 13% and has an annual interest outgo of Rs 240 crore and fixed overheads of Rs 60 crore. Sharma said, "We are looking at operational improvement and plans to bring down the debt through land monetisation, QIP and private equity deals."
Instead of paying Rs 960 crore and Rs 460 crore in FY10 and FY11, respectively, as per the rescheduled timeline, Sobha will pay an easier Rs 450 crore and Rs 690 crore in the period, the analyst said.
The company is looking to mop up between Rs 1,200 - Rs 1,400 crore by selling its land parcels at a premium. These parcels, totalling up to 475 acres, were valued at between Rs 600 and Rs 800 crore sometime back, according to market sources. However, Sharma refused to give any details .
Sobha recently raised around Rs 530 crore by diluting close to 22.5% equity through a qualified institutional placement (QIP). It intends to use Rs 410 crore of the QIP proceeds to reduce part of the debt.
Thursday, August 6, 2009
Sobha profit dips to Rs 13 cr in Q1
BANGALORE: Realty major Sobha Developers has seen its net profit nosedive for the first quarter ended June 30, 2009, at Rs 12.7 crore, against Rs. 50.5 crore for the same period in FY09. Income from operations stood at Rs 177.1 crore (Rs 346.8 crore).
Sobha, which bore the aftershocks of the global economic slowdown, has seen a revival in fortunes in the first quarter compared with the fourth quarter ended March 31, 2009. Net profit in the first quarter increased 76.4% to Rs 12.7 crore from the fourth quarter, while total income was sequentially up 15.6% at Rs 178.6 crore.
“The real estate industry has seen clear signals of revival in demand during the first quarter. With the Indian economy growing at 6-7% and expected to achieve a higher growth rate in the next couple of years, real estate infrastructure industries are poised to play a more significant role. It will be a domestic-driven industry, growing at a much faster pace,” a company filing made with the bourses added.
On its part, Sobha Developers has realigned debt, brought on board a private equity partner, besides successfully completing a qualified institutional placement (QIP) raising Rs 500 crore.
These steps, the filing goes on to say, have added the much-needed comfort in operations and have helped the company focus on progress in various projects across key cities, including Bangalore. The company intends to focus on debt reduction and cost optimisation and believes it is well-equipped to capitalise on the early revival in the Indian economy.
As of June 30, 2009, Sobha Developers has completed 50 residential / commercial in-house projects and 146 contractual projects covering 31.9 million sq ft of built-up space.
Sobha Developers has currently 31 residential / commercial ongoing projects totalling 9.2 million sq ft. The company has contractual projects in several states like Karnataka, Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab, Haryana, the NCR, besides Maharashtra.
On the bourses, the Sobha scrip was down 1.2% at Rs 219, with 3.5 lakh shares changing hands on BSE.
Sobha, which bore the aftershocks of the global economic slowdown, has seen a revival in fortunes in the first quarter compared with the fourth quarter ended March 31, 2009. Net profit in the first quarter increased 76.4% to Rs 12.7 crore from the fourth quarter, while total income was sequentially up 15.6% at Rs 178.6 crore.
“The real estate industry has seen clear signals of revival in demand during the first quarter. With the Indian economy growing at 6-7% and expected to achieve a higher growth rate in the next couple of years, real estate infrastructure industries are poised to play a more significant role. It will be a domestic-driven industry, growing at a much faster pace,” a company filing made with the bourses added.
On its part, Sobha Developers has realigned debt, brought on board a private equity partner, besides successfully completing a qualified institutional placement (QIP) raising Rs 500 crore.
These steps, the filing goes on to say, have added the much-needed comfort in operations and have helped the company focus on progress in various projects across key cities, including Bangalore. The company intends to focus on debt reduction and cost optimisation and believes it is well-equipped to capitalise on the early revival in the Indian economy.
As of June 30, 2009, Sobha Developers has completed 50 residential / commercial in-house projects and 146 contractual projects covering 31.9 million sq ft of built-up space.
Sobha Developers has currently 31 residential / commercial ongoing projects totalling 9.2 million sq ft. The company has contractual projects in several states like Karnataka, Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab, Haryana, the NCR, besides Maharashtra.
On the bourses, the Sobha scrip was down 1.2% at Rs 219, with 3.5 lakh shares changing hands on BSE.
Tuesday, May 26, 2009
Sobha best at only disappointing and cheating its customers
I had booked a flat with Sobha for their reputation. I already own a flat built by a lesser known builder. I know the pain of dealing with builders and getting the job done. But I must say my experience with Sobha has been very very bad.I feel like having made a big mistake by entrusting them with my hard earned money!
They have all the bad things that you may encounter while dealing with builders. And they charge a hefty PREMIUM for it. They have delayed my project by 1.5 yrs as everyone including the lesser known builder is struggling with the liquidity (And I thought Sobha was big). OF course they are smart enough not to pay any money to the customers for the delay. On the contrary they are prompt in charging interest if your payments are delayed by a single day.
Simple stuff like keeping track of changes requested by the customer is made a mess of by the staff. And they want you to accept the poor quality work. They have hidden facts and manipulated the terms.
Stay away from paying premium for poor quality , unprofessional work!
They have all the bad things that you may encounter while dealing with builders. And they charge a hefty PREMIUM for it. They have delayed my project by 1.5 yrs as everyone including the lesser known builder is struggling with the liquidity (And I thought Sobha was big). OF course they are smart enough not to pay any money to the customers for the delay. On the contrary they are prompt in charging interest if your payments are delayed by a single day.
Simple stuff like keeping track of changes requested by the customer is made a mess of by the staff. And they want you to accept the poor quality work. They have hidden facts and manipulated the terms.
Stay away from paying premium for poor quality , unprofessional work!
SOBHA NAHIN DETA HAIN
I made the mistake of buying a flat in SOBHA PRIMROSE. The cheating habits come as a package with the flat. Maybe if one reads the fine print in the agreement, one would find a clause which states that the customer can be cheated to any degree at the discretion of SOBHA. They installed SOLAR HEATERS only for the 9th floor buyers at 60,000/-,while the rest were not forced to buy the same. The best of solar heaters doesn't cost too very much.The damages to the walls etc were pointed out but never corrected.The quality of doors and windows was absolutely disgusting.Luckily i found a buyer, otherwise i had already filed a case in the consumer court. The attitude of the people in the office too is very pompous.They behave as if they are PNC MENON. What started off as a world class product, was reduced to a sham in a very short time, only because of the jokers employed by Mr. Menon.
Sobha Developers pays Re. 1 per share
BANGALORE: Sobha Developers has reported a revenue of Rs. 974.74 crore and a profit after tax of Rs. 109.68 crore for the year ended March 31, 2009. Compared to the previous fiscal, revenues had declined by 32 per cent and profit after tax 52 per cent. The directors have recommended a dividend of Re. 1 per share of Rs. 10 each against Rs. 6.50 per share in the previous year. — Special Correspondent
Sobha Developers rises on plans of raising funds
The company's stock is the largest gainer in the real estate sector.
It has appreciated by 75 per cent from Rs 111.15 to Rs 194.25 on reports that the company was going to raise funds through Qualified Institutional Placements (QIP) issue.
The board of directors of the company has called an Extraordinary General Meeting (EGM) on June 17, 2009.
The Extraordinary General Meeting will consider the increase in the share capital of the company up to Rs 1,500 crore and the increase in the limit of investment by foreign institutional investors (FIIs) in the equity shares of the company up to 100 per cent of the equity share capital of the company.
The Bangalore-based real estate firm that engages primarily in the construction and development of contractual and residential projects, is looking to raise around Rs 1,000 crore via QIP issue.
The company has posted 53 per cent fall in net profit to Rs 107.80 crore (Rs 228.10 crore) for the financial year ended 31st March, 2009, while net sales have declined by 32 per cent to Rs 974 crore (Rs 1,431 crore) during the year.
The counter clocked combined volumes of four million shares in last week as against two million shares were traded in previous week.
The real estate sector has been facing a liquidity crunch for some time now but the situation has improved post the election results.
In fact, many industry players are encouraged by the response Indiabulls and Unitech have received. Indiabulls Real Estate has raised Rs 2,656.50 crore through QIP.
The company issued 14.36 crore equity shares at Rs 185 per share. Unitech had raised about Rs 1,615.25 crore through QIP. The promoter’s stake after the QIP has come down in both the cases.
Sobha Developers says gets 2.25 bln rupees for projects
MUMBAI (Reuters) - Realtor Sobha Developers Ltd said on Tuesday it sold stake in projects in Bangalore and other cities for a total consideration of 2.25 billion rupees from Bangalore-based Purna Partners.
The firm entered into a term sheet with Purna Partners and has received 250 million rupees from the investor on Tuesday.
Sobha Developers is identifying certain land parcels in Bangalore and other cities for residential, commercial and mixed development projects via a special purpose vehicle (SPV).
Sobha Developers will be the shareholder along with Purna Partners in the SPV and will also execute the projects as the principal contractor.
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