1. Summary Information
|
|
|
Country |
|
|
Company Name |
SOBHA DEVELOPERS
LIMITED |
Principal Name 1 |
|
|
Status |
Good |
Principal Name 2 |
Mr. Anup Shah |
|
|
|
Registration # |
08-18475 |
|
Street Address |
E-106, |
||
|
Established Date |
07.08.1995 |
SIC Code |
-- |
|
Telephone# |
91-80-25597260
|
Business Style 1 |
Development |
|
Fax # |
91-80-25594138 |
Business Style 2 |
Construction |
|
Homepage |
Product Name 1 |
Commercial and Residential Projects |
|
|
# of employees |
2125
(Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs. 980638680 /- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and
Promoter Group 60.55% Public
Shareholding 39.45% |
Banking |
·
Andhra Bank |
|
Public Limited Corp. |
Yes |
Business Period |
15 (Years) |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A
(59) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
Company |
|
|
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
25,059,390,000 |
Current Liabilities |
6,150,280,000 |
|
Inventories |
10,173,940,000 |
Long-term Liabilities |
14,540,350,000
|
|
Fixed Assets |
1,429,140,000 |
Other Liabilities |
-- |
|
Deferred Assets |
51,520,000 |
Total Liabilities |
20,690,630,000 |
|
Invest& other Assets |
1,061,320,000 |
Retained Earnings |
16,104,040,000 |
|
|
|
Net Worth |
17,084,680,000 |
|
Total Assets |
37,775,310,000 |
Total Liab. & Equity |
37,775,310,000 |
|
Total Assets (Previous Year) |
36,166,990,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
11,139,920,000 |
Net Profit |
1,366,620,000 |
|
Sales(Previous yr) |
9,747,400,000 |
Net Profit(Prev.yr) |
1,096,780,000 |
MIRA
INFORM REPORT
|
Report Date : |
04.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
SOBHA DEVELOPERS LIMITED |
|
|
|
|
Registered Office : |
E-106, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
07.08.1995 |
|
|
|
|
Com. Reg. No.: |
08-18475 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L85110KA1995PLC018475 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS03591A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AABCS7723E |
|
|
|
|
Legal Form : |
Public limited liability company. The company’s shares are listed on
the stock exchanges. |
|
|
|
|
Line of Business : |
Development and Construction of Residential and Commercial Projects. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 68340000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. General
financial position is good. Trade relations are reported as fair. Business is
active. Payments are reported to be made as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
E-106, |
|
Tel. No.: |
91-80-25597260 / 25594139 / 25550695 |
|
Fax No.: |
91-80-25594138 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
4, Neeladri Plaza, Raja Ram Mohan Roy Road, Richmond Road
Circle, Bangalore - 560 025, Karnataka, India |
|
Tel. No.: |
91-80-22104561 / 2 / 3 / 4 / 5 / 6 |
|
Fax No.: |
91-80-22104569 |
|
|
|
|
Marketing Office: |
368, 7th Cross,
Wilson Garden, |
|
Tel. No.: |
91-80-22295936 / 7 / 8 and 22242172 |
|
Fax No.: |
91-80-22120852 |
|
E-Mail : |
|
|
|
|
|
Finance and Audit
Fees : |
43, 2nd Floor, |
|
Tel. No.: |
91-80-25564980 / 81 / 25307244 |
|
Fax No.: |
91-80-25304278 |
|
|
|
|
Projects and Trade Division : |
211/9A, 1st Main, 2nd Cross, Sanjeevappa
Layout, Nagavarapalya, C.V.Raman Nagar, |
|
Tel. No.: |
91-80-2524 4841 / 42 / 74 / 76 / 77 |
|
Fax No.: |
91-80-2534 0307 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sobha
Renaissance Information Technologies : |
SRIT House, #113/1B, |
|
Tel. No.: |
91-80-51951999 |
|
Fax No.: |
91-80-51523300 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sobha
Interiors Division : |
Plot #9, Bommasandra, Jigini Link Road,
Industrial Area, Bommasandra, Bangalore, Karnataka, India. |
|
Email : |
|
|
|
|
|
Manufacturing
Units : |
Interiors
Division Plot No. 9, JBLR Industrial Area, Hennagara Post, Anekal Taluk,
Bommasandra, Tel No.: 91-80-27831412 / 13 / 14 / 15 Glazing and
Metal Division Plot No. 10, JBLR Industrial Area, Hennagara Post, Anekal Taluk,
Bommasandra, Tel No.: 91-80-22631702 Concrete
Products Division Plot No. 329, Bommasandra, JBLR Industrial Area, Anekal Taluk, Tel No.: 91-80-27825177 / 27825220 Fax No.: 91-80-27825777 |
|
|
|
|
International Marketing Office : |
SOBHA REAL ESTATE LLC
|
|
Tel No.: |
9714-8867500 |
|
Email : |
|
|
|
|
|
Branches : |
Puzhakkal Padam, Puzhakkal, Tel :91 487 2389770/1
Pune Sobha Developers Limited Tel: 91-20-2612 4138, O-III-47, Block - C1, Third Floor, Palam
Vyapar Kendra, Palam Vihar, Gurgaon - 122017, Chennai
Mumbai
101, B-Wing, Charmee Enclave CHSL, 342,
Service Road, Vile Parle(E), Mumbai - 400 057,
Plot # 10, Bommasandra, Jigini Link Road, Industrial
Area Bommasandra, Bangalore, Karnataka, India.
Sobha
Developers Limited Plot No: 329,Bommasandra Jigani link road,
Industrial Area, Jigani, Anekal Taluk, Bangalore -562106, Karnataka, India Sobha
Restoplus- Spring Mattresses Plot no.9, Bommasandra, Sobha
Contracting LLC Sobha Group,
Services and Trade
Company LLC
P.O
|
DIRECTORS
As on : 11.06.2010
|
Name : |
Mr. P.N.C. Menon |
|
Designation : |
Chairman |
|
Qualification : |
Entrepreneur |
|
Date of Appointment : |
07.08.1995 |
|
|
|
|
Name : |
|
|
Designation : |
Vice Chairman |
|
Qualification : |
B.S.C.E. |
|
Date of Appointment : |
06.06.2004 |
|
|
|
|
Name : |
|
|
Designation : |
Managing Director |
|
Qualification : |
B.Com, ACA, ACS |
|
Date of Appointment : |
01.06.2001 |
|
Last Employment : |
Grasim Industries Limited |
|
|
|
|
Name : |
|
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Anup Shah |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
|
|
Designation : |
|
|
|
|
|
Name : |
|
|
Designation : |
Independent Director |
|
|
|
|
Name : |
|
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. S Baaskaran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Kanodia |
|
Designation : |
Director (upto 02.08.2008) |
|
|
|
|
Name : |
Mr. Sumit Keshan |
|
Designation : |
Director (from 11.07.2008 to 12.12.2008) |
KEY EXECUTIVES
|
Name : |
Mr. N Venkatramani |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr. Shine V Nair |
|
Designation : |
Key Management Personnel |
|
|
|
|
Name : |
Mr. P.N. Haridas |
|
Designation : |
Key Management Personnel |
|
|
|
|
Name : |
Mr. P.N.K. Mani |
|
Designation : |
Key Management Personnel |
MAJOR SHAREHOLDING PATTERN
As on 31.12.2010
|
Category |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
Shareholding of Promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Any Other Indian Promoters – Directors / Promoters and their Relatives
and Friends |
45000 |
0.05 |
|
|
|
|
|
Foreign |
|
|
|
Individuals (Non-Resident individuals/Foreign Individuals) |
59331350 |
60.50 |
|
Any Other Foreign Promoters |
30 |
-- |
|
|
|
|
|
Director / Promoter and their relatives and friends |
30 |
-- |
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds / UTI |
4684836 |
4.78 |
|
Financial Institutions/ Banks |
554719 |
0.57 |
|
Foreign Institutional Investors |
29076051 |
29.65 |
|
Foreign Venture Capital |
2000 |
0.00 |
|
Insurance Companies |
34759 |
0.48 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies Corporate |
1203552 |
2.97 |
|
Individuals |
|
|
|
I. Individual shareholders holding nominal share capital up to
Rs.0.100 million |
2201348 |
2.24 |
|
II. Individual shareholders holding nominal share capital in excess of
Rs.0.100 million |
366454 |
0.37 |
|
Any Other |
563769 |
0.57 |
|
- Clearing Members |
311914 |
0.32 |
|
- Directors and their Relatives of Directors
|
69271 |
0.07 |
|
- Trust |
4085 |
-- |
|
- Non Resident Indians |
178488 |
0.18 |
|
- Overseas Bodies Corporates |
11 |
-- |
|
Sub Total |
4335123 |
4.42 |
|
|
|
|
|
GRAND TOTAL |
98063868 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Development and Construction of Residential and Commercial Projects. |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
2125 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
Bankers : |
·
Andhra Bank · Canara Bank · Corporation Bank · Dhanalakshmi
Bank · HSBC Bank · ICIC Bank · Kotak Mahindra
Bank · Oriental Bank of
Commerce · State Bank of · Standard
Chartered Bank · Axis Bank ·
·
IDBI Bank ·
State Bank of ·
YES Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Chartered Accountants |
|
|
|
|
Statutory Auditors : |
S R Batliboi and Associates Chartered Accountants |
|
Address : |
UB City, ‘ |
|
|
|
|
Related Parties: |
· Allapuzha Fine Real Estate Private Limited · Bikasa Properties Private Limited · Bikasa Realtors Private Limited · Chauma Properties and Construction Private Limited · Chikamangaloor Properties Private Limited · Cochin Cyber City Private Limited · Cochin Cyber Golden Properties Private Limited ·
· Cochin Super City Developers Private Limited · Daram Cyber Developers Private Limited · Daram Cyber Properties Private Limited · Daram Land Real Estate Private Limited · Furniture Makers Limited Company, LLC · Greater Cochin Cyber City Private Limited · Greater Cochin Developers Private Limited · Greater Cochin Properties Private Limited · Greater Cochin Realtors Private Limited · HER Consultants Private Limited · Hill and Menon Securities Private Limited ·
· Indeset Trading and Decorations Services LLC · Kilai Builders Private Limited · Kilai Properties Private Limited · Kilai Super Developers Private Limited · Kuthavakkam Developers Private Limited · Kuthavakkam Properties Private Limited · Lotus Manpower Consultants Services Private Limited [upto September 30, 2008] · Lotus Manpower Services [upto September 30, 2008] · Mannur Real Estate Private Limited · Mapedu Realtors Private Limited · Megatech Software Private Limited · Moolamcode Traders Private Limited · Oman Builders Private Limited. · Padmalochana Enterprises Private Limited · Pallavur Projects Private Limited · Perambakkam Builders Private Limited · Puzhakkal Developers Private Limited · Red Lotus Facility Services Private Limited [upto September 30, 2008] · Red Lotus Metal Works Facilities & Services Private Limited [upto September 30, 2008] · Red Lotus Realtors Private Limited · Royal Interiors Private Limited · Rusoh Modern Properties Private Limited · SBG Housing Private Limited · Sengadu Builders Private Limited · Sengadu Developers Private Limited · Sengadu Properties Private Limited ·
Services and Trading · Sobha Applied DSP Private Limited ·
Sobha Contracting LLC ( · Sobha Contracting Private Limited [upto September 30, 2008] · Sobha Developers (Pune) Private Limited [associate w.e.f June 26, 2008 and 19% holding w.e.f December 28, 2008] · Sobha Electro Mechanical Private Limited · Sobha Glazing and Metal Works Private Limited · Sobha Innercity Technopolis Private Limited · Sobha Interiors Private Limited · Sobha Jewellery Private Limited · Sobha Projects and Trade Private Limited · Sobha Renaissance Information Technology Private Limited · Sobha Space Private Limited · Sobha Technocity Private Limited · Sri Kurumba Trust · Sunbeam Projects Private Limited · Technobuild Developers Private Limited · Thakazhi Developers Private Limited · Thakazhi Realtors Private Limited · Tirur Cyber City Developers Private Limited ·
Tirur Cyber Real Estates Private Limited |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Subsidiaries of |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/-each |
Rs.1500.000 Millions |
|
5000000 |
Preference Shares |
Rs.100/-each |
Rs.500.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
98063868 |
Equity Shares |
Rs.10/- each |
Rs.980.640
Millions |
|
|
|
|
|
Note :
Of the above :
· 42280960 Equity Shares of Rs.10/- each, were allotted as fully paid-up bonus shares by capitalisation of reserves
· 583468 Equity Shares of Rs.10/- each, were issued as fully paid-up shares by pre initial public offering (‘IPO’) placement
· 8896825 Equity Shares of Rs.10/- each, were issued as fully paid-up shares by IPO
· 25162135 Equity Shares of Rs. 10 each were issued as fully paid up shares to qualified institutional buyers [QIB].
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11139.920 |
9747.400 |
14291.440 |
|
|
|
Other Income |
52.910 |
169.650 |
53.300 |
|
|
|
TOTAL (A) |
11192.830 |
9917.050 |
14344.740 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales |
6324.630 |
4503.700 |
7724.560 |
|
|
|
Personnel Expenses |
768.270 |
1008.640 |
1024.730 |
|
|
|
Operating and Other Expenses |
1502.720 |
1537.010 |
1939.370 |
|
|
|
TOTAL (B) |
8595.620 |
7049.350 |
10688.660 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2597.210 |
2867.700 |
3656.080 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
671.400 |
1052.140 |
596.890 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1925.810 |
1815.560 |
3059.190 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
323.100 |
360.330 |
350.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1602.710 |
1455.230 |
2708.790 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
236.090 |
358.450 |
425.780 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1366.620 |
1096.780 |
2283.010 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
12.900 |
3.400 |
0.150 |
|
|
TOTAL EARNINGS |
12.900 |
3.400 |
0.150 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
58.360 |
77.610 |
102.340 |
|
|
|
Capital Goods |
0.000 |
7.880 |
56.010 |
|
|
|
Others |
0.000 |
0.000 |
NA |
|
|
TOTAL IMPORTS |
58.360 |
85.490 |
158.350 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.91 |
15.04 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
3156.000 |
4308.000 |
3629.000 |
|
Total Expenditure |
2530.000 |
3337.000 |
2809.000 |
|
PBIDT (Excl
OI) |
626.000 |
971.000 |
620.000 |
|
Other Income |
10.000 |
5.000 |
17.000 |
|
Operating
Profit |
636.000 |
976.000 |
837.000 |
|
Interest |
134.000 |
109.000 |
97.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
502.000 |
867.000 |
740.000 |
|
Depreciation |
67.000 |
69.000 |
73.000 |
|
Profit
Before Tax |
435.000 |
798.000 |
667.000 |
|
Tax |
92.000 |
209.000 |
177.000 |
|
Reported PAT |
343.000 |
589.000 |
490.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
343.000 |
589.000 |
490.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
12.20 |
11.06 |
15.92
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.31 |
14.93 |
18.95
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.87 |
4.16 |
8.31
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.13 |
0.27
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.21 |
2.29 |
2.36
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.72 |
5.69 |
5.42
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The chronicle of subject was back to a decade of years. Mr.
P N C Menon founded the company in 7th August of the year 1995. Subject is one
of the largest and only one backward integrated company in the construction
arena. Doing the business of construction, development, sale, management and
operation of townships, housing projects, commercial premises and other related
activities. Subject has a number of Group companies that support its backward
integration model includes Sobha Interiors Division, Sobha Glazing and Metal
Works Division, Sobha Concrete Products, Sobha Projects and Trade Division,
Sobha Renaissance Information Technology, S and T Group - Oman, Indeset - UAE
and Gulf International Construction and Interiors Company (GICI) - Qatar.
Retail Division of the company includes Sobha Restoplus - Spring Mattress and
Sobha Modular Office Furniture. Subject is an industry leader in
Result of Operations
:
After the unprecedented and dramatic changes in the macro economic environment during the last financial year, there has been significant improvement in the economic situation and general outlook especially during the later part of the financial year.
They have successfully overcome the challenges of the economic downturn through a series of measures like further capital infusion, monetization of land parcels, product innovation, aggressive marketing strategy and ensuring better control over costs.
They can see the benefits of the above measures in terms of higher sales, improved cash flows and significant reduction in debt. During the year under review, their Company has executed and handed over 10 residential projects covering an area of 1.82 •million square feet and 26 contractual projects covering an area of 3.75 million square feet resulting in aggregate development of 5-57 million square feet.
Management
Discussion and Analysis :
- Economic Scenario
Recovery in World
Economy
World economy has started showing signs of a gradual recovery from the
ill-effects of the worst ever recession the world has seen in recent times.
Although the pace of economic growth has slowed down across the world in the
last couple of years, they have begun to see modest growth in developed nations
and a relatively higher growth amongst the emerging economies including
The Indian Story
Even during these tough times, Indian economy has shown phenomenal
resilience and has achieved a growth rate of over 6.5% in 2009 and is expected
to continue the high growth performance in the coming years as well. This
performance is aided by certain key characteristics of the Indian economy:
1. Strong sustainable domestic demand both from urban and rural
economies
2. Conservative fiscal policies followed by the financial regulators and
Indian financial institutions
3. Government focus on infrastructure spending
4. Ability to attract capital into the country
Real Estate Market
The Indian Real Estate market, particularly the residential asset class,
is showing signs of robust recovery in line with the revival of the Indian
economy. Our economy is being driven by its strong fundamentals, demographic
features and structural robustness including:
1. Young population comprises of over 60% of Indians
2. High growth of Urbanization
3. Nuclearisation of families
4. Rise in house hold disposable income
5. Improved outlook on urban infrastructure development
6. Increased penetration of home financing for end customers
Above factors, along with an enhanced consumer confidence arising from
higher jobs, income security and moderation of prices in Tier I cities are expected
to drive, the demand up for real estate sector in particular and all market
segments in general. As the developed nations' growth path is on a recovery
mode, the demand for commercial space catering to exports (IT, ITES etc) is
also expected to witness a substantial growth in the coming years.
With the growth momentum back on track, the availability of capital to
real estate sector is also on a rise, both for domestic and foreign capital.
This will boost the confidence of all stakeholders of the industry and provide
the right impetus for developers to cater to the potential end user demand
growth
B. The Company
Their Company is one of the leading real estate development and
construction companies in
The Delivery
Experience
Their Company has achieved a phenomenal growth since inception and has
had a superlative delivery experience compared to its peers. They are inching
towards 50th million square foot of delivery in just under 15 years of our existence.
We have so far delivered over 36 million square feet of real estate space
across 20 cities in
In the contracting segment, we are the largest developers of Grade A
commercial office space in
In the contracting segment, they are the largest developers
of Grade A commercial office space in
Recognition and Rewards
They have received numerous awards and accolades for the exceptional
quality of our delivery and have been duly recognized by prestigious
institutions, some of which are:
• 'Best of the Best' Award for Employee Care Centre (ECC), built for
Infosys, Pune
•
• NICMAR
• Best Developer From
• Best Executed Project in India Award for our residential project Sobha
Malachite at Jakkur,
• Architect arid Builder's Award by Construction World, for being among
C. Business Model
and Delivery Mechanism
Unique Business
Model
They have developed a unique business model in the Indian Real Estate
and Construction industry. Their
company's primary business is development of own real estate spaces.
However, they have successfully leveraged their construction expertise to grow
into other associated business segments - Contracts, Manufacturing and
Design and Engineering catering to third party customers. This unique business
model has proved to be very successful and is
characterized by the following features:.
1. Superior control over the company's delivery quality
2. Continuouse TThim€<anent_of their construction expertise through adoption of market innovations and best-practices
3. Stable source of revenue in tough economic times
4. Flexibility to grow into associated businesses in future
Integrated Delivery
and Support Mechanism
Since its inception, the heart of their Company's philosophy has been to continuously strive towards delivery of high quality end product, understanding of the customers' needs and catering to them in the best possible manner. Over the years, the Company's "Backward Integrated Delivery Model" has evolved to support this philosophy.
They have developed in-house expertise in the entite gamut of construction activity space — including design (through a design studio of architectural, structural and MEP design), planning and estimation, project execution (civil, mechanical, electrical, infrastructure, metal works, interiors) and integrated project management. Additionally, they have set up a separate quality and safety department, headed by German master masons, which ensures the best quality product for the customers.
The
Overall, they have set up and implemented a model in. which a strong in-house expertise is developed for the entire range of activities in real estate and construction.
D. Overall Strategy
They have shown great strength and resilience in the last 2 years of extremely challenging business environment. On the basis of learning from the last couple of years and also based on their eagerness to get equipped for the potential growth phase in future, they have developed a tightly integrated strategy to achieve "Sustainable and Profitable Growth" as depicted below.
BACKGROUND:
"Sobha Developers Limited ('Company' or 'SDL') was incorporated on August
7, 1995. SDL is a leading real estate developer engaged in the business of
construction, development, sale, management and operation of all or any part of
townships, housing projects, commercial premises and other related activities.
The Company is also engaged in manufacturing activities related to interiors,
glazing and metal works and concrete products which also provides backward
integration to SDL's turnkey projects."
Un-audited
financial results (Provisional) for the quarter ended 31st December,
2010
(Rs. In millions)
|
Particulars |
Quarter ended 31.12.2010 (unaudited) |
Nine months ended on 31.12.2010 (unaudited) |
|
(a) Net Sales/ Income from
operation |
3629.000 |
11042.000 |
|
(b) Other Operating Income |
0.000 |
75.000 |
|
Total Income |
3629.000 |
11117.000 |
|
2. Expenditure |
|
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
220.000 |
328.000 |
|
b. Consumption of Raw-Materials |
406.000 |
1528.000 |
|
c. Purchase of Traded Goods |
1525.000 |
4757.000 |
|
d. Employees Cost |
244.000 |
767.000 |
|
e. Depreciation |
73.000 |
209.000 |
|
f. Other Expenditure |
414.000 |
1349.000 |
|
g. Total |
2882.000 |
8938.000 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
747.000 |
2179.000 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
17.000 |
32.000 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
764.000 |
2211.000 |
|
6. Interest |
97.000 |
311.000 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
667.000 |
1900.000 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
667.000 |
1900.000 |
|
10. Tax Expenses |
172.000 |
492.000 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
5.000 |
(18.000) |
|
12. Extraordinary Items |
-- |
4.000 |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
490.000 |
1422.000 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
981.000 |
981.000 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
-- |
-- |
|
16. Earning per Share (EPS) |
|
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
5.00 |
14 .50 |
|
b) Basic and diluted EPS after extraordinary items for the period,for the
year to date and for the previous year (not
annualised) |
5.00 |
40.50 |
|
17. Public Shareholding |
|
|
|
Number of Shares |
-- |
38687488 |
|
% of Share holding |
-- |
39.45% |
|
18. Promoters and promoter group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
-- |
10700000 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
-- |
18.02% |
|
- Percentage of shares (as a
% of the total share capital of the company) |
-- |
10.91% |
|
b) Non-encumbered |
|
|
|
- Number of shares |
-- |
48676380 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
-- |
81.98% |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
-- |
49.64% |
Note :
- There were no complaints pending to be resolved / replied at the beginning of the quarter. The company has not received any complaints from investors during the quarter. There were no complaints pending to be resoled / replied at the end of the quarter.
- As the company’s business activity primarily falls within a single business and geographical segment. There are no additional disclosures to be provided under accounting standard 17 Segment reporting
- This state has been reviewed by the audit Committee and taken on record at the meeting of the Board of directors of the company held on January 24, 2011
- The figures of the previous year period have been regrouped / reclassified wherever necessary.
FIXED ASSETS
·
·
·
Factory Buildings
·
Other Buildings
·
Plant and Machinery
·
Scaffolding items
·
Furniture and Fixtures
·
Computers
·
Office Equipments
·
Vehicles
WEBSITE DETAILS:
COMPANY PROFILE:
SOBHA spearheading a revolution in Real Estate in
- Over a decade
of quality focused best practices for building world class products have helped
them enhance quality of life and delight customers.
- Over a decade
of engineering excellence and unique initiative towards Backward
Integration that has helped them control costs, and deliver on time, every
time.
- Over a decade
of passion in every detail of work, at every level, driving continuous
innovation; has resulted in making Sobha a preferred real-estate brand in
- Over a decade
of rock-solid values, uncompromising business ethos, and transparency in
all transactions; have contributed to their earning the trust of all their
stakeholders.
It was in the year 1995 that Mr. P N C Menon founded Sobha developers
with the clear vision to "transform
the way people perceive quality" in the real estate industry
returned home from the Middle east where he was acclaimed for quality interiors
and construction since 1977. His intuition and business sense buttressed with
the exhilaration of returning to his homeland led him to believe that he could
make Quality the key differentiator between his proposed venture and other
construction companies. Over the intervening years this vision continues to be
the bedrock of all endeavours.
Today Subject a Rs. 10 billion plus company
is one of the largest and only backward integrated company in the construction
arena. Since its inception Subject's reputation is built on rock solid values,
benchmark quality standards, uncompromising business ethos, focused customer
centric approach, robust engineering, in-house Research and development and
transparency in all spheres of conducting business, which have contributed in
making Subject a preferred real estate brand in both residential and commercial
segments. This was emphatically endorsed during its IPO in 2006 when the issue
was oversubscribed by 126 times that created history, being the first event of
its kind in Indian capital markets.
The company has gone from strength to
strength completing 30.76 million square feet of area as of
April 2009, 50 completed residential/ commercial in house projects, 31 ongoing
residential/ commercial projects and 140 contractual projects, 34 ongoing
contractual projects beginning with the first residential project in
The who’s who of Corporate India form the client list including
stalwarts like Infosys Technologies, Hewlett Packard, dell, the Taj Group, Mico,
Timken and others. Residential projects include premium apartments, villas and
row houses with amenities like club houses, shopping centres and swimming pools
as a value addition to the
Sobha lifestyle that the company brings home to all its clients.
Press
Release :
SOBHA DEVELOPERS ANNOUNCES FINANCIAL RESULTS FOR Q3 of FY 2010 – 11
Sobha turns into a Rs.1000 Crore Brand in the Residential Space in
CY-2010 – First from
Highlights of Q3 FY 2010-11:
- Sobha
registers Rs.1000 crores Real Estate (Residential) sales during the
calendar year 2010. First such company from
- Revenues at Rs.3,647 Millions, Up 17% from Q3 FY 2009-10
- PAT at Rs.490 Million, Up 20% from Q3 FY 2009-10
- Sold 705,031 Sq. Ft. in Q3 FY 2010-11
- Completed & handed over 10 projects measuring 2.54 mn. sft. in Q3 FY 2010-11
- Launched
three new projects – Sobha Forest View in
- Bagged Contractual orders worth Rs.900 millions in Q3, besides Infosys
- Conferred with “ACETECH” and “Best of the Best Structures” Awards
- Plans to launch 11 mn sft. in the near future
Financial Performance
:
Sobha Developers has registered a turnover of Rs.3,647 Millions for the 3rd Quarter ended December 31, 2010 as compared to Rs.3,104 Millions in Q3 of FY 2009-10, up 17%. The Profit after tax stood at Rs.490 Million compared to Rs.408 Million in Q3 of FY 2009-10, up 20 %.
The company registered a turnover of Rs.11,152 Million for the nine months period ended December 31, 2010 of the FY 2010-11 as compared to Rs.7,161 Million in the corresponding period of FY 2009-10, up 56%. The Profit after tax stood at Rs.1,423 Million for the nine months period ended December 31, 2010 of the FY 2010-11 as compared to Rs.810 Million in the corresponding period of FY 2009-10, up 76 %. The company in the 3rd Quarter of FY 2010-11 sold 705,031 sft and in the first nine months of FY 2010-11 sold 2,120,592 sft, which is 47% more as compared to the corresponding period of the last. The average selling price on the sale made during nine months is about Rs.3940/ sft which have gone up by 5% compared to the previous 6 months average. We are confident of maintaining our current selling price.
Commenting on the Q3 results for FY 2010-11, Mr. J C Sharma,
Managing Director, Sobha Developers Limited, said: “We are really delighted by
our performance in the last three quarters. While our sales have been on a
constant rise, the price realization has also increased from Rs.3000 per sft to
Rs. 4000 per sft. We are proud to state that Sobha has become a Rs.1000 crore
brand in the residential segment which we have achieved in the calendar year
2010. This puts us in the top league of listed real estate companies and the
first from
“On the corporate contractual work side, which is our other vertical, during the 3rd Quarter 0f 2010-11, we completed and handed over 0.46 mn. sft. We have about 6.53 mn. sft of contractual projects on hand to be delivered over a period of 2 years and fresh committed orders of 6.94 mn. sft. First time in Q3 2010-11, Sobha has bagged contractual orders worth about Rs.900 millions from other than Infosys, including prestigious clients like ITC, Biocon, Institute of Public Enterprises(IPE), GMR, Hotel Leela Ventures and others.” said Mr. Sharma. Infosys continues to be the biggest ongoing contractual client.
Speaking about other financial details, Mr. Sharma stated “The cash flow from operations continues to remain positive for the last few quarters. During the 3rd Quarter the company has generated operational cash flow of Rs.3,006 Million. The debt - equity ratio stands at 0.67 as on 31st Dec 2010 compared to 0.69 as on 30th Sept 2010.” Also during the 3rd quarter the company succeeded in monetizing land for Rs.342 Million. With this it hopes to achieve projected land monetization of Rs.2000 Million for the current financial year.
“Actually at present we are performing better than our earlier best times of 2007-08. Our net worth has doubled, cash flows are higher, execution capability has increased, and our debt equity ratio is much more healthier.” added Mr. Sharma.
New Launches:
Three new projects were launched in the third quarter –
Sobha Forest View in
SOBHA FOREST VIEW,
bordering a dense forest in south
SOBHA IVORY is a 3 bedroom super luxurious project spread across 3.8 acres with 80% open space at Kondhwa, Pune. It has 140 apartments with basement and ground covered car parking plus 11 floors. The built up area ranges from 1459.32 sq ft to 1906.39 sq ft. and offers appeasing and lush green surroundings to its customers.
SOBHA SAPPHIRE is a 3 & 4 BHK super luxury apartment spread over 2.9 acres overlooking a scenic 6.5 acre lake. It has 216 apartments divided into 3 towers with basement and ground covered car parking plus 26 floors. The built up area ranges from 1716 sq ft. to 3083 sq ft. All the 3 projects are receiving good response from customers.
Growth Plans:
Elaborating on the Company’s growth plans Mr. Sharma said
“In the next few quarters we plan to launch about 11 mn sft. We plan to enter
into National Capital Region, Chennai and
Real Estate Outlook:
After one and a half years of
gradual consolidation, real estate in
demand for real estate. Not just residential,
even commercial segment is starting to look up. With
Recognition And Awards:
Sobha Developers won the “ACETECH”
Award for “Excellence in Commercial Segment (Interior Design)” for the Infosys
Global Education Centre- II built in
About Sobha
Developers Limited :
Founded in 1995, Sobha Developers Limited is one of the largest and the only backward integrated real estate player in the country. It means the company has all the key competencies and in-house resources to deliver a project from its conceptualization to completion.
Sobha is primarily focused on residential and contractual projects. Company’s residential projects include presidential apartments, villas, row houses, super luxury apartments, luxury apartments, moderately priced apartments and plotted development. In all its residential projects Company lays strong emphasis on environment management, water harvesting and high safety standards.
On the contractual side, the Company has constructed a variety of structures for corporates including offices, convention centres, software development blocks, multiplex theatres, hostel facilities, guest houses, food courts, restaurants, research centres and club houses.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.96 |
|
|
1 |
Rs. 73.37 |
|
Euro |
1 |
Rs. 62.33 |
CORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.