Sobha Developers net down 75%

Sobha Developers net down 75%
The Hindu Business Line, July 30, 2009, Page 14

Our Bureau, Bangalore

Sobha Developers recorded a net profit of Rs 12.7 crore for the quarter ended June 30, 2009, down 75 per cent from Rs 50.5 crore recorded during the corresponding quarter of last year. The turnover was down 49 per cent at Rs 178.6 crore (Rs 348.1 crore).

Mr J.C. Sharma, Managing Director, Sobha Developers, said that downsizing staff and restructuring employee benefits have resulted in reduced employee costs. Last year, during the corresponding quarter, the company had over 3,000 employees, which has now come down by about 1,000 employees. Besides, the company had also effected a 15 per cent cut in employee salaries. Costs were down 44 per cent to Rs 143 crore (Rs 254.1 crore).

Residential projects

He added that there has been a 45 per cent sequential growth in sales for the company, and “the process of this improvement is expected to continue in the coming months.” The company plans to launch residential projects in the National Capital Region, Mysore, Coimbatore, Bangalore and Thrissur this financial year. “We will not be competing in the Rs 20-lakh segment, but wish to compete in the 1,000-sq-ft-plus segment,” he said. The residential units would be priced about Rs 35 lakh (all inclusive), he added.

The company plans to raise about Rs 150-200 crore more during this year, in addition to the Rs 750 crore it had raised through private placements and qualified institutional placements. “We are confident of achieving our targets,” Mr Sharma said, of the Rs 900 crore, the company planned to raise in all.