The company had said it intended to sell 4.2 million square feet for sales of Rs 2,600 crore in FY14 but in the first nine months of FY14, it has only managed to sell 2.66 million square foot.
Most brokerages continue to remain overweight on the stock.
Also read: Sobha slides 4%; brokerages not worried
The company's Vice Chairman and Managing Director JC Sharma admitted in a CNBC-TV18 interview that third-quarter sales had been a disappointment. He attributed the slowdown to weakness to below-average performance seen in the NCR region and some delays in Bangalore property launches.
While admitting FY14 sales guidance looked difficult to achieve, Sharma said he did not expect the weakness to continue into next year.
Below is the eduted transcript of JC Sharma interview on CNBC-TV18
Q: The numbers that you greeted us with were not very happy, after a series of fairly good performance your sales bookings for Q3 fell by 6 percent and sales volume were down by 18 percent. Does it look like a sustained weakness to you or is it one-off?
A: As far as sales for last quarter are concerned they were a bit disappointing for us as well. We did not expect that in this quarter we should be doing only 740,000 square feet, though the realisations were far better then what we were hoping for. But we don't feel that this trend is likely to continue.
Primarily the whole of last year the total sales got impacted because of below average performance from National Capital Region (NCR). If you take that out then we have done quite well throughout the year. For the calendar year 2013, our volumes are up by 5 percent and from a value term we are ahead by about 20 percent. Going forward also I believe that from this quarter onwards we should be showing much improved performance operationally also.
Q: Given the disappointment in Q3 sales is it quite likely that you all will miss your FY14 guidance of 4.2 million sq ft for FY14?
A: We have said that we should be doing 4.2 million sq ft and Rs 2,600 crore in value terms. We do believe that we should be doing better than last financial year where we did Rs 2,200 crore and 3.75 million sq ft. As far as volume guidance is concerned we believe that this will be a tough target to achieve. We are banking on few launches. We have lined up four-five projects in this quarter. We are hopeful to get a good response.
Q: Would margins do a little better since you said realisations have done well even if volumes fell?
A: The high value items in Bangalore and all other places like Calicut or Trichur, they have been doing reasonably well. Of course the quantity as such in these smaller cities is not that great because of that the realisations per sq ft are higher. And on a percentage basis we hope to sustain our margins as well.
Q: Are you facing any approval issues in Bangalore, which is your main market, and if yes, is that something which will continue to impact the company not just in this quarter in Q3 but perhaps even going forward?
A: I don't think there are as such any significant approval issues. More or less things are in place. There have been couple of delays in some projects but things appear to be in place and hopefully this quarter onwards we will have good number of approvals.
Q: Were your sales lower because you launched less or was demand lower? What are the launches for the current quarter?
A: I think combination of both. We cannot deny that the demand, especially in Bangalore which had been holding on so far, had shown some kind of a weakness and all of us have been impacted by that. Also, we believe that had there been a few launches in the last quarter in Bangalore, our Bangalore performance would have been significantly better and that would have shown in our quarterly performance.
So it is a combination of both, we cannot take away the kind of economic environment while Bangalore has still been holding firm and has done better year-on-year basis. But, of late, developers are seeing some kind of a demand pressure. But the new projects whosoever has been launching were also seeing that phenomena that there they are getting good response initially.
Sobha Developer stock price
On January 08, 2014, at 14:09 hrs Sobha Developers was quoting at Rs 307.80, down Rs 4.15, or 1.33 percent. The 52-week high of the share was Rs 472.40 and the 52-week low was Rs 214.10.
The company's trailing 12-month (TTM) EPS was at Rs 21.83 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 14.1. The latest book value of the company is Rs 215.85 per share. At current value, the price-to-book value of the company is 1.43.
Anda sedang membaca artikel tentang
Likely to miss FY14 guidance but weakness temporary: Sobha
Dengan url
https://kesehatanda.blogspot.com/2014/01/likely-to-miss-fy14-guidance-but.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Likely to miss FY14 guidance but weakness temporary: Sobha
namun jangan lupa untuk meletakkan link
Likely to miss FY14 guidance but weakness temporary: Sobha
sebagai sumbernya
0 komentar:
Posting Komentar