Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Sobha Developers
Sobha indicated that the Indian real estate industry would face execution challenges in
the future considering the availability of manpower, engineering challenges for scaling up
and increased pressure from customers for early delivery.
Residential and commercial demand would continue to be robust in Bangalore with
growth in the IT sector. Currently, Sobha has construction contracts for ~11.5msf (mainly
Infosys) which would translate into new employee addition of ~120,000.
In FY12, debt repayment of INR5.5bn would be funded through ~INR2.5bn of operational
cash, INR1bn of land sales and fresh debt.
Sobha has developed 240 projects (excluding plot development) of c. 40msf to date
which they indicate is the highest in the country. Presales were ~2.1msf in FY10 and are
likely to be ~2.7msf and ~3.5msf in FY11e and FY12e respectively. Higher volumes of
0.8msf in FY12e would be driven by launches in three new cities - NCR, Chennai and
Mysore.
Sobha expects to launch the strategically located NCR project, which is near the airport
(~8km) and Dwarka (~5km), in the next one month. The NCR project has two land
parcels of 152 acres and 20 acres for the development of a township (villas) and group
housing projects, respectively. It holds ~64% ownership in the township project under a
joint development while the group housing project is 100% owned. The average selling
price of the township and group housing project would be INR8,500/sf and INR3,500/sf,
respectively.
Sobha expects the effective tax rate to increase to c. 33% in FY12 from ~25% at
present.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Sobha Developers
Sobha indicated that the Indian real estate industry would face execution challenges in
the future considering the availability of manpower, engineering challenges for scaling up
and increased pressure from customers for early delivery.
Residential and commercial demand would continue to be robust in Bangalore with
growth in the IT sector. Currently, Sobha has construction contracts for ~11.5msf (mainly
Infosys) which would translate into new employee addition of ~120,000.
In FY12, debt repayment of INR5.5bn would be funded through ~INR2.5bn of operational
cash, INR1bn of land sales and fresh debt.
Sobha has developed 240 projects (excluding plot development) of c. 40msf to date
which they indicate is the highest in the country. Presales were ~2.1msf in FY10 and are
likely to be ~2.7msf and ~3.5msf in FY11e and FY12e respectively. Higher volumes of
0.8msf in FY12e would be driven by launches in three new cities - NCR, Chennai and
Mysore.
Sobha expects to launch the strategically located NCR project, which is near the airport
(~8km) and Dwarka (~5km), in the next one month. The NCR project has two land
parcels of 152 acres and 20 acres for the development of a township (villas) and group
housing projects, respectively. It holds ~64% ownership in the township project under a
joint development while the group housing project is 100% owned. The average selling
price of the township and group housing project would be INR8,500/sf and INR3,500/sf,
respectively.
Sobha expects the effective tax rate to increase to c. 33% in FY12 from ~25% at
present.
No comments:
Post a Comment