This Article is From May 12, 2015

Sobha Q4 Net Profit Down 12% at Rs 62 Crore

New Delhi: Realty firm Sobha today reported 12 per cent decline in consolidated net profit at Rs 61.5 crore for the quarter ended March 31, 2015.

Its net profit stood at 70.2 crore in the year-ago period, Bengaluru-based Sobha said in a filing to the BSE.

Total income decreased to Rs 509.3 crore in January- March quarter for 2014-15 fiscal from Rs 630.7 crore in the corresponding period of the previous year.

During the full 2014-15 financial year, Sobha's net profit rose to Rs 238.1 crore as compared to Rs 235 crore in the previous fiscal.

Total income increased to Rs 2,455.5 crore during the last fiscal from Rs 2,183.7 crore in the previous year.

Commenting on the results, Sobha Vice Chairman and Managing Director JC Sharma said: "For the real estate sector, the financial year continued to be challenging- subdued demand, lower absorption rates and higher inventory levels- all evidencing a general slowdown in the market."

Further, he said the input costs of critical resources like cement, sand and manpower have increased along with a corresponding increase in the indirect costs.

However, due to the prevailing slowdown, the company was not in a position to pass on the rise in input costs to the end customers by way of revision in product prices, Sharma added.

Sharma said the company launched 14.12 million sq ft of developable area and 10.74 million sq ft of saleable area in 2014-15 fiscal.

The board has recommended dividend of Rs 7 per equity share of Rs 10 each.