Sobha Developers gives new sales guidance of $363M for FY13

BY  Pooja Sarkar; VCCircle

Has recorded drop in sales in sequential basis, but up 26 per cent year on year at 0.84 million square feet.

Bangalore based realty company Sobha Developers has seen growth in its first quarter operational numbers as compared to last year. For the quarter ended June 30, it managed to sell 0.84 million sq.ft of new space, which is valued at $87million (Rs 4,79 crore), with an average realisation rate of Rs 5,737 per square feet. Though year-on-year there is a growth in sales realisation of 26 percent, sequentially there is a decline. In Q4FY12, the realtor had sold 0.863 million square feet.

In the same period last year, Sobha had managed to sell 0.67 million square feet, for an average price realisation of Rs 4,547 per square feet.

The company has also given a new sales guidance for the year of $363 million (Rs 2,000 crore) for this fiscal for the period last year the developer managed sales of $309 million (Rs 1,700 crore). In the last quarter the developer managed to launch a new villa project called Sobha West Hill in Coimbatore with a total saleable area of 0.14 million square feet.

At present it is accruing money from projects across Bangalore, NCR, Chennai, Pune, Thrissur, Coimbatore and Mysore.

Kejal Mehta and Dhrushil Jhaveri real estate analyst from Prabhudas Liladher wrote in their report to their client “on account of strong launches and monetization of old sales, coupled with a steady execution, the company has brought its net debt down from $220 million (Rs1,210 crore) in FY11 to $207 million (Rs 1,140 crore ) in FY12. We further expect net debt to reduce to $161 million (Rs 890 crore) in FY13, resulting in a DER of 0.56, down from 0.67 in FY11.”

Sales from its Gurgaon project witnessed a strong sequential increase of 24 per cent.

Industry Status for Real Estate sector mooted at CII’s Realty 2012

Technology, Skills, delivery & credibility: key game changers for Real Estate sector’s growth – CII’s Realty 2012 Conference    Jun 28, 2012

Real Estate’s development is development of the country - Sudhir Krishna, Secy, MoUD, GoI

“Real Estate sector’s development is the development of the whole country”, said Dr Sudhir Krishna, Secretary, Ministry of Urban Development, Government of India while addressing the industry at 8^th edition of Realty 2012, organized by Confederation of Indian Industry (CII) Northern Region, here today.

All basic amenities in the urban areas like Water, solid waste management, transport system can be profit making, so Public Private Partnership (PPP) in the urban areas should be encouraged, he further suggested. 

“Historically the unorganized and fragmented real estate sector in India is slowly evolving into an organised sector with strong focus on technology, efficiency, skills, a strong delivery mechanism, community development, infrastructure development and adoption of green practices” said Mr Anshuman Magazine, Chairman, Realty 2012 & CMD, CBRE South Asia Pvt. Ltd. “The companies who do not concentrate on these factors will find it difficult to sustain in the long run”, he added.

“Technology and efficiency would be the real game changer in this sector considering ever changing scenario”, said Mr J C Sharma, Vice Chairman & Managing Director, Sobha Developers Ltd.

“It is disheartening that real estate sector which is linked with 300 industries directly or indirectly, provides employment to 50 million people and contributes 17 % to India’s GDP is still to get the industry status for itself. Hence there is a dire need to change the perception about the Real Estate sector’s and enhance its credibility in the eyes of all stakeholders including consumers, government, Banks, RBI and the regulatory bodies. And this would happen if and only if we deliver what we promise”, said Mr Sachin Sandhir, Managing Director, South Asia, RICS.

“Inspite of the Regulations that exist in the sector, we have to dedicatedly take the sector to the next level. Some of the challenges like unavailability of land, acute shortage of labour, high cost of capital and unstable government policies and regulations need immediate attention” opined Mr Munesh Khanna, Senior Partner, Grant Thornton Advisory Private Limited.

Mr Chittaranjan Kumar Khetan, Joint Secretary, Ministry of Urban Development, Government of India highlighted the issues faced by the customers and shared the set of approvals and permissions that the Real Estate Developers have to pass through. He further shared that the Draft Real Estate (Regulation & Development) Bill 2011 would not only safeguard the interests of the consumers to a large extent but would also be a balanced in nature. The bill is almost ready and just needs to be put in the parliament for approval.

Mr Rohit Modi, Former Deputy Managing Director, Gammon India Limited said that “we need to see things from bigger perspective where in all stakeholders, viz urban local bodies, real estate companies, government, banks etc work in coordination for over all implementation of infrastructure development programmes and make all necessary facilities and amenities available to the consumers at best prices and also to safeguard their interests for enhancing the perception of the fast growing sector which has immense potential to grow with FDI in multi brand retail also to be allowed in coming future. Source: cii.in