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Sobha Developers – Result analysis

June 3, 2008

Topline for the full year FY08 up by mere 20% compared to FY07. For 4QFY08 topline improved by 33% to 4741 mn compared to 3573 mn in 4QFY07. Increase in revenue can be attributed to better (average) realization from Rs. 2700 in FY07 to Rs. 3200 in FY08. The total area sold during FY08 increased by 37.4% compared to FY07.

Higher interest cost lead to a decline in net profit margins from 17% in 3QFY08 to 15% in 4QFY08. However on the back of better realization and increased volume, net margins for the full year increased by 200 bps from 14% in FY07 to 16% in FY08.

Sobha Developers Land bank stands at 4024 acres (230 mn sq. ft developable area) as on 31st March 08. Outstanding amount to be paid over next 2 years for the land acquired is Rs. 660 cr. Land bank is distributed as follows – Bangalore 1600 acres, Pune 170 acres, Hosur 700 acres, Cochin 500 acres, Chennai 500 acres, Gurgaon 228 acres and others 326 acres.

Average realization in 2007-08 was Rs 3,200 per sq. ft compared to Rs 2,700 sq. ft in 2006-07.

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