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Sobha Limited Interim / Quarterly Report 2021
61956_rns_2021-08-14_ca891c45-f86c-47d6-854b-b81aaa6cf02d.pdf
Interim / Quarterly Report
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Date: August 14, 2021
| To | To |
|---|---|
| The Deputy Manager | The Manager |
| Department of Corporate Services | The National Stock Exchange of India Limited |
| BSE Limited | Exchange Plaza, Plot No C/1, G Block |
| PJ Towers, Dalal Street | Bandra Kurla Complex |
| Mumbai -400 001 | Mumbai -400 051 |
| Scrip Code: 532784 | Scrip Code: SOBHA |
Dear Sir/ Madam,
Sub: Outcome of Board Meeting held on August 14, 2021.
This is to inform that the Board of the Directors at their meeting held today, i.e. Saturday, August 14, 2021, took on record the Unaudited Financial Results for the quarter ended June 30, 2021.
In this connection, please find enclosed herewith:
-
- Unaudited Consolidated Financial Results for the quarter ended June 30, 2021 along with the Limited Review Report.
-
- Unaudited Standalone Financial Results for the quarter ended June 30, 2021 along with the Limited Review Report.
-
- Presentation on the Operations and Financial Results in terms of Regulation 46 of SEBI (Listing Obi igations and Disclosure Requirements), Regulations 2015.
-
- Press Release, the Company intends to disseminate through media.
The Board Meeting commenced at 2.00 PM and concluded at 4:11 PM.
Kindly take the aforesaid information on record in compliance of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015.
Yours sincerely,
FOR SOBHA � LIMITED � i VIGHNESHW AR G B COMPANY SECRETAR IANCE OFFICER
Chartered Accountants
Embassy Golf Links Business Park, Pebble Beach, B Block, 3rd Floor, Off Intermediate Ring Road, Bengaluru-560 071 India
Telephone: + 91 80 4682 3000 Fax + 91 80 4682 3999
Limited review report (unmodified) on unaudited quarterly consolidated financial results and consolidated year-to-date results under Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015
To Board of Directors of Sobha Limited
-
- We have reviewed the accompanying Statement of unaudited consolidated financial results of Sob ha Limited ("the Parent") and subsidiaries (the Parent and subsidiaries together referred to as "the Group"), the share of the net profit after tax and total comprehensive income of its joint venture for the quarter ended and year to date results for the period from 1 April 2021 to 30 June 2021 ("the Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
-
- This Statement, which is the responsibility of the Parent's management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting' ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to express a conclusion on the Statement based on our review.
-
- We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the IndependentAuditorofthe Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.
- The Statement includes the results of the entities disclosed in Annexure 1.
~
BS R & Co. (a partnership firm with Registration No. BA61223) converted into BS R & Co. LLP (a Limited Liability Partnership with LLP Registration No. AAB-8181) with effect from October 14, 2013 14th Floor, Central B Wing and North C Wing, Nesco IT Park 4, Nesco Center, Western Express Highway, Goregaon (East), Mumbai - 400063
Limited review report (unmodified) on unaudited quarterly consolidated financial results and consolidated year-to-date results under Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (continued)
-
- Attention is drawn to the fact that the figures for the 3 months ended 31 March 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.
-
- Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 8 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
-
- We draw attention to note 4 to the Statement in respect of ongoing enquiries by the regulatory authority wherein the Holding Company has been asked to provide contracts, documents, correspondences, business rationale and justification for certain past transactions. The Holding Company has been responding to the enquiries and believes that the transactions are not prejudicial to the interests of the Holding Company and balances due therefrom are recoverable basis its assessment and legal advice on the manner of settlement agreed with the counter parties. The duration and outcome of the ongoing regulatory enquiry is presently uncertain.
Our conclusion on the Statement is not modified in respect of this matter.
Limited review report (unmodified) on unaudited quarterly consolidated financial results and consolidated year-to-date results under Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (continued)
- We did not review the interim financial results of 19 subsidiaries included in the Statement, whose interim financial results reflect total revenues of Rs 44.98 million, total net loss after tax of Rs 22.27 million and total comprehens~ve loss of Rs 22.27 million for the quarter ended 30 June 2021 as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs Nil and total comprehensive income of Rs Nil for the quarter ended 30 June 2021 as considered in the Statement, in respect of a joint ventures, whose interim financial results have not been reviewed by us. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and a joint venture, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Our conclusion on the Statement is not modified in respect of this matter.
for B S R & Co. LLP Chartered Accountants lCAI Firm registration number: 101248W/W-100022
Amrit Bhansali Partner Membership number: 065155 UDIN: 21065155AAAAEJ2231
Place: Bengaluru Date: 14 August 2021
Annexure 1: List of subsidiaries and joint venture
Subsidiaries of Sobba Limited
| SL.No. | Name of the subsidiary |
|---|---|
| 1 | Sobha City |
| 2 | Sobha Highrise Ventures Private Limited |
| 3 | Sob ha Developers (Pune) Limited |
| 4 | Sobha Assets Private Limited |
| 5 | Sobha Tambaram Developers Limited |
| 6 | Sobha Nandambakkam Developers Limited |
| 7 | Sobha Construction Products Private Limited |
Subsidiaries of Sobba City
| SL.No. | Name of the subsidiary | |
|---|---|---|
| 1 | Vayaloor Properties Private Limited, | |
| 2 | Vayaloor Builders Private Limited, | |
| 3 | Vayaloor Developers Private Limited | |
| 4 | Vayaloor Real Estate Private Limited | |
| 5 | Vayaloor Realtors Private Limited and | |
| 6 | Valasai Vett1kadu Realtors Private Limited - |
Subsidiar J of Sobba Hi2hrise Ventures Private Limited
| SL No | Name of the subsidiary |
|---|---|
| 1 | Sobha Contracting Private Limited |
| 2 | Annalakshmi Land Developers Private Limited |
Subsidiary of Sobba Developers (Pune) Limited
| SL No | Name of the subsidiary |
|---|---|
| 1 | Kilai Builders Private Limited |
| 2 | Sobha Interior Private Limited |
| 3 | Kuthavakkam Realtors Private Limited |
| 4 | Kuthavakkam Builders Private Limited |
Joint venture of Sobba Limited
| SL No | Name of the · oint venture | |
|---|---|---|
| 1 | Kondhwa Pro· ects LLP |
SOBHA LlMITED
Corporate Identity Number (CIN) : US201KA199SPLC018475
Regd. Office: 'SOBHA', Sarjapur- Marathaballi Outer Ring Road (ORR), Devarabisanaballi, Bellandur Pos~ Bangalore - 560 103 Ph: +9 1-80-49320000 Fax: +91-80-49320444 Email: [email protected]
Website: www.sobha.com
Statement of consolidated unaudited financial results for the quarter ended 30 June 2021
| 3 months ended Preceding 3 monthsCorresponding 330.06.2021ended 31.03.2021months endedParticulars[Audited]30.06.2020[Audited)[Unaudited)[Unaudited]1Revenue(a) Revenue from operations5,5343,5005,123(b) Other income387546(c) Finance income**28047895,8893,593Total income5,2502Expenses(a) Land purchase cost1,308212(b) Cost of raw materials and comPonents consumed277641373(c) Purchase of project materials1971,545416( d) (Increase)/ decrease in inventories(2,934)(492)(61)(e) Subcontractor and other charges1,1281,768657(f) Employee benefits expense526304517(g) Depreciation and amortization2041891751,5021,784(h) Finance costs**1,840(i) Other expenses7341,1836115124Total expenses5.7433 539543Profit before tax (1-2)1461264Tax expense(a) Current tax2111325(54(b) Deferred tax (credit) / charge17<br>!125Total tax expense!33!1218Profit for the period (3-4)1796651086Other comprehensive incomeItems that will not be reclassified to profit or loss in subsequent periods:-Re-measurement (losses) / gains on defined benefit plan (net of tax expenses)76-67Total other comprehensive income7Total comprehensive income for the period [comprising profit for the period (after tax) and other18666114comprehensive income (after tax)) (5+6)Paid-up equity share capital9489489488(Face value per sl!_are - < 10)--Reserves excludin~ revaluation reverses9 | ~ in million) | |||
|---|---|---|---|---|
| Previous yearended 31.03.2021 | ||||
| 21,098 | ||||
| 386 | ||||
| 420 | ||||
| 21 ,904 | ||||
| 2,544 | ||||
| 1,862 | ||||
| 3,92 1 | ||||
| (4,169) | ||||
| 5,124 | ||||
| 1,771 | ||||
| 794 | ||||
| 6,012 | ||||
| 3,293 | ||||
| 21.152 | ||||
| 752 | ||||
| IOI | ||||
| 28 | ||||
| 129 | ||||
| 623 | ||||
| 7 | ||||
| 7 | ||||
| 630 | ||||
| 948 | ||||
| 23,329 | ||||
| 0.70Basic and diluted EPS (not annualised for the quarters)1.891.14 | 10 | Earnings Per Share (EPS) - (in <j< td="">6.57</j<> | 6.57 |
refer note 6
** Includes notional interest income on unwinding of discount on deposits as per Ind AS 109 amounting to< 79 million,< 226 million,< 27 million for the three months ended 30 June 202 1, 3 I March 202 1, 30 June 2020 and< 307 million for the year ended 31 March 2021
••• Includes notional interest accrued on advance from customers as per Ind AS 115 amounting to< 1,086 million, < 688 million,< 936 million for the three months ended 30 June 202 1, 31 March 2021, 30 June 2020 and< 2,650 million for the year ended 31 March 2021.
cl
(I) Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments viz., Real estate and Contractual and manufacturing business. Details of consolidated segment-wise revenue, results, assets and liabilities is given below:
| 3 months ended Preceding 3 months Corresponding 3 | Previous year | ||||
|---|---|---|---|---|---|
| 30.06.2021 | ended 31.03.2021 | months ended | ended 3 1.03.202 1 | ||
| Particulars | [Unaudited] | (Audited]* | 30.06.2020 | [Audited] | |
| [Unaudited] | |||||
| I | Segment revenue | ||||
| Real estate | 3,768 | 2,899 | 2,229 | 13,103 | |
| Contractual and manufacturing | 1,495 | 2,773 | 1,417 | 8,693 | |
| Total | 5,263 | 5,672 | 3,646 | 21,796 | |
| Less: Inter segment revenues | (140) | (138) | (146) | (698) | |
| Net revenue from operations | 5,123 | 5.534 | 3,500 | 21,098 | |
| II | Segment results | ||||
| Real estate | 1,120 | 1,096 | 772 | 3,937 | |
| Contractual and manufacturing | 195 | 258 | 295 | 1,381 | |
| Profit before other adjustments | 1,315 | 1,354 | 1,067 | 5,318 | |
| Less: Finance cost*** | (754) | (814) | (848) | (3,362) | |
| Less: Other unallocable expenditure | (483) | (523) | (231) | (1 ,703) | |
| Add: Finance and other income** | 48 | 129 | 66 | 499 | |
| Profit before tax | 126 | 146 | 54 | 752 | |
| III | Segment assets # | ||||
| Real estate | 95,551 | 94,325 | 98,304 | 94,325 | |
| Contractual and manufacturing | 9,362 | 10,009 | 8,709 | 10,009 | |
| Unallocated assets | 7142 | 7 767 | 2 841 | 7 767 | |
| Total assets | 112 055 | 112 101 | 109 854 | 112,101 | |
| IV | Segment liabilities # | ||||
| Real estate | 50,294 | 51,933 | 47,859 | 51,933 | |
| Contractual and manufacturing | 5,664 | 4,106 | 6,056 | 4, 106 | |
| Unallocated liabilities | 31,707 | 31 785 | 31.560 | 31.785 | |
| Total liabilities | 87665 | 87 824 | 85 475 | 87.824 |
refernote 6 # Capital employed = Segment assets - Segment liabilities
Excludes notional interest income on unwinding of discount on deposits as per Ind AS 109 amounting to < 79 million, < 226 million,< 27 million for the three months ended 30 June 2021, 31 March 2021, 30 June 2020 and< 307 million for the year ended 31 March 2021
Excludes notional interest accrued on advance from customers as per Ind AS 115 amounting to < 1,086 million, < 688 million,< 936 million for the three months ended 30 June 2021, 31 March 2021, 30 June 2020 and< 2,650 million for the year ended 31 March 2021.
(2) The figures of standalone financial results are as follow:
| 3 months ended Preceding 3 months Corresponding 3 | Previous year | |||
|---|---|---|---|---|
| Particulars | 30.06.2021 | ended 31.03.2021 | months ended | ended 31.03.2021 |
| [Unaudited] | (Audited)* | 30.06.2020 | [Audited] | |
| [Unaudited) | ||||
| Total income | 5,250 | 5,956 | 3,591 | 21,912 |
| Profit before tax | 153 | 145 | 72 | 746 |
| Profit for the period | 126 | 183 | 73 | 655 |
- (3) The unaudited consolidated financial results for the quarter ended 30 June 2021 have been reviewed by the Audit Committee and taken on record by the Board of Directors of the Group at its meeting held on 14 August 2021. The figures for the quarter ended 30 June 2021 was subject to 'Limited Review' by Statutory Auditors of the Company who have expressed an unqualified review opinion. The information presented above is prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The above unaudited consolidated financial results are filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 and are available on the Stock Exchange websites, www.nseindia.com and www.bseindia.com.., and on the Company's website~ www.sobha.com.
- (4) In respect of matters relating to certain transactions entered into by the Holding Company in earlier years, the Holding Company is being asked to provide contracts, documents, correspondences, business rationale and justification for these transactions by regulatory authorities. The Holding Company has been responding to the same from time to time.
The Holding Company and the counter parties have agreed to a manner of settlement of certain receivables. Based on such an arrangement, receivables have been settled by a combination of transfer of counter parties' share in units of an ongoing launched project and through the counter parties' revenue share in the sales proceeds of another project which is, expected to be generated over a period of time. Based on the Holding Company's overall assessment including legal advice on enforceability of the manner of settlement, the outstanding amounts are considered fully recoverable and the terms of the aforesaid transactions are not prejudicial to the interests of the Holding Company and will not have any adverse impact on the financial statements.
(5) The Holding Company had entered into a joint development arrangement with certain Land Owners in Gurugram, Haryana, in earlier years. In respect of this transaction, the concerned authorities are investigating if there were irregularities in respect of the Holding Company's manner of allotment and pricing of certain plots under this project, with respect to the terms and conditions mentioned in the development policy ofHaryana Development and Regulation of Urban Areas Act (HDRUAA), 1975 and the bilateral agreement between the land owners and Directorate of Town and Country Planning, Haryana (DTCP).
Subsequent to the balance sheet date, the Holding Company has been asked to provide contracts, documents and justification in respect of this transaction by the concerned authorities and the Holding Company is responding to the queries raised from time to time. There is no demand or notice issued by the concerned authorities to the Holding Company in respect of these investigations ..
The Holding Company, based on its assessment and independent legal advice obtained, believes that these transactions have been carried out in accordance with all the applicable laws & regulations and the said bilateral agreement The Group has sufficient evidences to support the validity of these transactions and this would not result in any adverse impact against the Group.
- (6) The figures for the preceding 3 months ended 31 March 2021 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also, the figures up to the end of third quarter had only been reviewed and not subjected to audit
- (7) The previous period / year figures have been regrouped / reclassified, wherever necessary, to conform to the current quarter presentation.
For and on behalf of the Board of Directors of SobhaLimit~
J.C. Sharma Vice Chairman and Managing Director
Bengaluru, India 14 August 2021
Chartered Accountants
Embassy Golf Links Business Park, Pebble Beach, B Block, 3'• Floor, Off Intermediate Ring Road, Bengaluru-560 071 India
Telephone: + 91 80 4682 3000 Fax + 91 80 4682 3999
Limited review report (unmodified) on unaudited quarterly standalone financial results and standalone year-to-date results under Regulation 33 of the (Listing Obligations and Disclosure Requirements) Regulations, 2015
To Board of Directors of Sobha Limited
- 1. We have reviewed the accompanying Statement of unaudited standalone financial results ofSobha Limited ("the Company") for the quarter ended and year to date results for the period from 1 April 2021 to 30 June 2021 ("the Statement").
-
- This Statement, which is the responsibility of the Company's management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting' ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'). Our responsibility is to issue a report on the Statement based on our review.
-
- We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
-
- Attention is drawn to the fact that the figures for the 3 months ended 31 March 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.
-
- Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
1~ ''"-"'"""" ""'"""~ =m-,•s••~ lli (a Limited Liability Partnership with LLP Registration No. AAB-8181) with effect from October 14, 2013
Registered':
Limited review report (unmodified) on unaudited quarterly standalone financial results and standalone year-to-date results under Regulation 33 of the (Listing Obligations and Disclosure Requirements) Regulations, 2015 (continued)
- We draw attention to note 3 to the Statement in respect of ongoing enquiries by the regulatory authority wherein the Company has been asked to provide contracts, documents, correspondences, business rationale and justification for certain past transactions. The Company has been responding to the enquiries and believes that the transactions are not prejudicial to the interests of the Company and balances due therefrom are recoverable basis its assessment and legal advice on the manner of settlement agreed with the counter parties. The duration and outcome of the ongoing regulatory enquiry is presently uncertain.
Our conclusion on the Statement is not modified in respect of this matter.
for B SR & Co. LLP Chartered Accountants ICAI Firm registration number: 101248W/W-100022
**Amrit Bhansali** *Partner* Membership number: 065155 UDIN: 21065155AAAAEI7181
Place: Bengaluru Date: 14 August 2021
#### SOBHA LIMITED
Corporate Identity Number (CIN): lA5201KA1995PLC018475
Regd. Office: 'SOBHA', Sarjapur- Marathahalli Outer Ring Road (ORR), Devarabisanahalli, Bellandur Post, Bangalore - 560 103
Ph: +91-80-49320000 Fax: +91-80-49320444 Email: [email protected] Website: www.sobha.com
Statement of standalone unaudited financial results for the quarter ended 30 June 2021
| 3 months ended<br>Preceding 3<br>Corresponding 3<br>months ended<br>30.06.2021<br>months ended<br>Particulars<br>30.06.2020<br>[Unaudited]<br>31.03.2021<br>[Audited]*<br>(Unaudited]<br>I<br>Revenue<br>(a) Revenue from operations<br>3,497<br>5,116<br>5,533<br>(b) Other income<br>40<br>38<br>131<br>(c) Finance income**<br>292<br>54<br>96<br>Total income<br>5,956<br>3,591<br>5,250<br>2<br>Expenses<br>(a) Land purchase cost<br>1,307<br>12<br>2<br>(b) Cost of raw materials and components consumed<br>641<br>277<br>373<br>(c) Purchase of project materials<br>1,570<br>306<br>215 | ~ in million) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
| | Previous year |
| | ended 31.03.2021 |
| | (Audited] |
| | |
| | |
| | 20,967 |
| | 493 |
| | 452 |
| | 21 ,912 |
| | |
| | 2,148 |
| | 1,862 |
| | 4,010 |
| ( d) (Increase)/ decrease in inventories<br>(2,738)<br>(473) | (3,383) |
| 102<br>(e) Subcontractor and other charges<br>1,128<br>1,738<br>657 | 5,094 |
| (0 Employee benefits expense<br>526<br>304 | 1,771 |
| 517<br>(g) Depreciation and amortization<br>177<br>205 | 755 |
| 165<br>(h) Finance costs***<br>1,448<br>1,753<br>1,786 | 5,760 |
| (i) Other expenses<br>1,114<br>597<br>718 | 3,149 |
| 5097<br>Total expenses<br>5.811<br>3 519 | 21.166 |
| 3<br>Profit before tax (1-2)<br>145<br>72 | 746 |
| 153 | |
| 4<br>Tax expense | |
| (a) Current tax<br>21<br>112<br>22 | 99 |
| (59)<br>(!13)<br>(b) Deferred tax (credit) / charge<br>5 | (8) |
| (I)<br>(38)<br>Total tax expense<br>27 | 91 |
| Profit for the period (3-4)<br>5<br>73<br>183<br>126 | 655 |
| 6<br>Other comprehensive income | |
| Items that will not be reclassified to profit or loss in subsequent periods: | |
| Re-measurement (losses)/ gains on defined benefit plan (net of tax expenses) | |
| -<br>6<br>6 | 7 |
| -<br>Total other comprehensive income<br>6<br>6 | 7 |
| 7<br>189<br>Total comprehensive income for the period [comprising profit for the period (after tax) and other<br>132<br>73<br>comprehensive income (after tax)] (5+6) | 662 |
| 8<br>Paid-up eQuity share capital | |
| 948<br>948<br>948<br>(Face value per share - < 10) | 948 |
| -<br>-<br>-<br>Reserves excluding revaluation reverses<br>9 | 21,922 |
| Earnings Per Share (EPS) - (in~<br>10 | |
| Basic and diluted EPS (not annualised for the Quarters)<br>1.93<br>0.77<br>133 | |
**refer note 5**
•• Includes notional interest income on unwinding of discount on deposits as per Ind AS 109 amounting to< 78 million, < 229 million,< 29 million for the three months ended 30 June 2021, 31 March 2021, 30 June 2020 and< 319 million for the year ended 31 March 2021
••• Includes notional interest accrued on advance from customers as per Ind AS 115 amounting to< 1,063 million, < 665 million,< 930 million for the three months ended 30 June 2021, 31 March 2021, 30 June 2020 and< 2,515 million for the year ended 31 March 2021.
*dv*
(I) Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments viz., Real estate and Contractual and manufacturing business. Details of standalone segment-wise revenue, results, assets and liabilities is given below:
| | Particulars | 3 months ended<br>30.06.2021<br>[Unaudited) | Preceding 3<br>months ended<br>31.03.2021<br>[Audited]* | Corresponding 3<br>months ended<br>30.06.2020<br>[Unaudited] | Previous year<br>ended 3 I. 03 .2021<br>[Audited] |
|-----|----------------------------------------------------------------|---------------------------------------------|---------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------|
| I | Segment revenue | | | | |
| | Real estate | 3,723 | 2,742 | 2,204 | 12,686 |
| | Contractual and manufacturing | 1 591 | 2,929 | 1439 | 8 979 |
| | Total | 5,314 | 5,671 | 3,643 | 21,665 |
| | Less: Inter segment revenues | (198) | (138) | (146) | (698) |
| | Net revenue from ooerations | S 116 | 5.533 | 3.497 | 20.967 |
| [[ | Segment results | | | | |
| | Real estate | 1,112 | 967 | 774 | 3,650 |
| | Contractual and manufacturing | 203 | 288 | 299 | 1,418 |
| | Profit before other adjustments | 1,315 | 1,255 | 1,073 | 5,068 |
| | Less: Finance cost*** | (723) | (783) | (823) | (3,245) |
| | Less: Other unallocable expenditure | (483) | (521) | (231) | (1,703) |
| | Add: Share of (loss) / profit in a subsidia,y partnership firm | (12) | 67 | (12) | 138 |
| | Add: Finance and other income** | 56 | 127 | 65 | 488 |
| | Profit before tax | 153 | 145 | 72 | 746 |
| Ill | Segment assets# | | | | |
| | Real estate | 87,121 | 86,636 | 88,992 | 86,636 |
| | Contractual and manufacturing | 9,544 | 10,397 | 9,275 | 10,397 |
| | Unallocated assets | 10440 | 10 508 | 6779 | 10 508 |
| | Total assets | 107.105 | 107 541 | 105 046 | 107 541 |
| IV | Segment liabilities# | | | | |
| | Real estate | 47,749 | 49,732 | 45,476 | 49,732 |
| | Contractual and manufacturing | 5,808 | 4,265 | 6, 174 | 4,265 |
| | Unallocated liabilities | 30546 | 30,674 | 30449 | 30.674 |
| | Total liabilities | 84103 | 84671 | 82099 | 84,671 |
**refer note 5**
# Capital employed - Segment assets - Segment liabilities
Excludes notional interest income on unwinding of discount on deposits as per Ind AS 109 amounting to< 78 million,< 229 million,< 29 million for the three months ended 30 June 2021, 31 March 2021, 30 June 2020 and< 319 million for the year ended 31 March 2021
Excludes notional interest accrued on advance from customers as per Ind AS 115 amounting to< 1,063 million,< 665 million,< 930 million for the three months ended 30 June 2021 , 3 I March 2021, 30 June 2020 and< 2,515 million for the year ended 31 March 2021.
(2) The unaudited standalone financial results for the quarter ended 30 June 2021 have been reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at its meeting held on 14 August 2021. The figures for the quarter was subject to 'Limited Review' by Statutory Auditors of the Company who have expressed an unqualified review opinion. The information presented above is prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The above unaudited standalone financial results are filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 and are available on the Stock Exchange websites, **www.nseindia.com and www.bseindia.com. and on the Company's website, www.sobha.com.**
(3) In respect of matters relating to certain transactions entered into by the Company in earlier years, the Company is i,i,ing asked to provide contracts, documents, correspondences, business rationale and justification for these transactions by regulatory authorities. The Company has been responding to the same from time to time.
The Company and the counter parties have agreed to a manner of settlement of certain receivables. Based on such an arrangement, receivables have been settled by a combination of transfer of counter parties' share in units of an ongoing launched project and through the counter parties' revenue share in the sales proceeds of another project which is, expected to be generated over a period of time. Based on the Company's overall assessment including legal advice on enforceability of the manner of settlement, the outstanding amounts are considered fully recoverable and the terms of the aforesaid transactions are not prejudicial to the interests of the Company and will not have any adverse impact on the financial statements.
(4) The Company had entered into a joint development arrangement with certain Land Owners in Gurugram, Haryana, in earlier years. In respect of this transaction, the concerned authorities are investigating if there were irregularities in respect of the Company's manner of allotment and pricing of certain plots under this project, with respect to the terms and conditions mentioned in the development policy of Haryana Development and Regulation of Urban Areas Act (HDRUAA), 1975 and the bilateral agreement between the land owners and Directorate of Town and Country Planning, Haryana (DTCP).
Subsequent to the balance sheet date, the Company has been asked to provide contracts, documents and justification in respect of this transaction by the concerned authorities and the Company is responding to the queries raised from time to time. There is no demand or notice issued by the concerned authorities to the Company in respect of these investigations.
The Company, based on its assessment and independent legal advice obtained, believes that these transactions have been carried out in accordance with all the applicable laws & regulations and the said bilateral agreement. The Company has sufficient evidences to support the validity of these transactions and this would not result in any ad-:erse impact against the Company.
- (5) The figures for the preceding 3 months ended 31 March 2021 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also, the figures up to the end of third quarter had only been reviewed and not subjected to audit.
- (6) The previous period / year figures have been regrouped / reclassified, wherever necessary, to conform to the current quarter presentation.
For and on behalf of the Board of Directors of Sobba Limited
BengalW1J, India 14 August 2021
J. C. Sharma Vice Chairman and Managing Director
**June 2021 June 2021**
- ➢ **Residential real estate sector showed indomitable resilience against the second Covid-19 wave.**
- ➢ **Despite sudden impact from second covid-19 wave, the sector appears to be on track for recovery.**
- ➢ **Large developers with better liquidity will continue to increase their market share.**
- ➢ **The industry continues to witness a structural positive shift in housing demand with fundamental demand drivers expected to remain in place.**
- ➢ **Low-interest rates, conducive government policies, flexible payment plans, easy investment opportunities and use of technologies have played a vital role in driving this growth.**
- ➢ **In the current scenario, the extended work from home & digitalization culture is likely to stay and people will continue to demand more spacious homes in future which will help the residential market to grow.**
- ➢ **According to Knight Frank research report which says that 80% of prospective buyers are looking to acquire a house within the next one year.**
- ➢ **Achieved total cash inflow of Rs. 7.18 billion during Q1-22 which is up by 31% as compared to Q1-21.**
- ➢ **Achieved Real Estate Cash inflow of Rs 5.48 billion during Q1-22 which is up by 63% as compared to Q1-21.**
- ➢ **We have generated Net Operating Cashflow of Rs 1.34 billion during Q1-22. The same is up by 44% as compared to Q1-**
**21.**
- ➢ **Net debt got reduced by Rs 0.36 billion during the quarter.**
- ➢ **Our borrowing cost has come down during the Quarter and stands at 8.98 % as on 30.06.2021.**
- ➢ **Expected real estate cashflow at project level is Rs 75.06 billion in the coming years from current ongoing and completed projects.**
- ➢ **Balance receivables of Rs. 42.80 billion from residential units sold covers 89 % as of Q1 -22 as compared to 79 % as of Q4 -21 of the balance project cost to be spent for ongoing projects offered for sale.**
- ➢ **Completed unsold inventory stands at 0.47 million square feet as on 30.06.2021 which is one of the lowest in the real estate sector.**
| PASSION AT W | |
|--------------|--|
| | |
| PARTICULARS | Q1-22 | Q1-21 | FY-21 |
|--------------------------------------|-------|-------|--------|
| Operational cash inflows | | | |
| Real Estate Operations | 5,477 | 3,359 | 22,169 |
| Contractual & Manufacturing | 1,702 | 2,107 | 8,600 |
| Total Operational cash inflow (A) | 7,179 | 5,466 | 30,769 |
| Operational cash outflows | | | |
| Real Estate project expenses | 2,377 | 1,725 | 9,181 |
| Joint Development Partner Payments | 946 | 366 | 4,424 |
| Contracts and Manufacturing expenses | 1,604 | 1,777 | 7,634 |
| Statutory Dues | 254 | 139 | 532 |
| Corpus Repayment | 168 | 39 | 384 |
| Central Over Heads | 315 | 366 | 1,458 |
| Advertising & Marketing expenses | 172 | 127 | 766 |
| Total Operational cash outflow (B) | 5,835 | 4,539 | 24,379 |
| | | | |
| Net Operational Cash flow : (C=A-B) | 1,344 | 927 | 6,390 |
### *Amount Rs.in Millions*
| PARTICULARS | Q1-22 | Q1-21 | FY-21 |
|-------------------------------------------------|-------|-------|--------|
| Financial Outflows | | | |
| Finance Cost | 731 | 379 | 2,733 |
| Income Tax | 97 | 42 | 97 |
| Total Financial Outflows (D) | 828 | 421 | 2,830 |
| Net Cash flow after Financial Outflow : (E=C-D) | 516 | 506 | 3,560 |
| Capital Outflows | | | |
| Land Payments | (7) | - | 382 |
| Dividend including tax | - | - | 664 |
| Donation / CSR Contribution | 20 | 18 | 95 |
| Capex –<br>General | 141 | - | 35 |
| Capex –<br>Commercial Real Estate | 6 | 2 | 115 |
| Total Capital Outflow (F) | 160 | 20 | 1,291 |
| COVID Moratorium Interest availed (G) | - | 474 | 560 |
| | | | |
| Total Cash Inflow<br>: (A) | 7,179 | 5,466 | 30,769 |
| Total Cash Outflow : (H =B+D+F+G) | 6,823 | 5,454 | 29,060 |
| Net Cash flow (A -<br>H) | 356 | 12 | 1,709 |
# CASHFLOW HIGHLIGHTS: Q1-21 V/s Q1-22
**Net Operating Cash flow**
**Real Estate Cash Inflow**
*Amount in Rs. Billions*
**Net Cash flow**
*Amount Rs.in Billions*
| Particulars | 30th Jun-20 | 30th Sept-20 | 31st Dec-20 | 31st Mar-21 | 30th June-21 |
|-------------------------------|-------------|--------------|-------------|-------------|--------------|
| Gross Debt | 31.25 | 31.56 | 31.34 | 30.62 | 30.21 |
| Less: Cash & Cash Equivalents | 1.04 | 1.06 | 1.59 | 2.10 | 2.04 |
| Net Debt | 30.21 | 30.50 | 29.75 | 28.52 | 28.17 |
| Finance Cost(Gross) | | | | | | | Rs. In Million | |
|---------------------|-------|-------|-------|-------|-------|-------|----------------|-------|
| Q1-20 | Q2-20 | Q3-20 | Q4-20 | Q1-21 | Q2-21 | Q3-21 | Q4-21 | Q1-22 |
| 840 | 855 | 818 | 840 | 848 | 851 | 848 | 815 | 754 |
# **Average cost of borrowing has declined in the last 7 quarters**
# REAL ESTATE (RESIDENTIAL) PROJECTS: PROJECTED CASH FLOW
| d o<br>B |
|----------|
| |
| |
| |
| HINH |
| |
| |
| |
| |
| |
| SOBHA |
| |
| |
| |
| Particulars | Completed projects<br>with unsold<br>inventory | Ongoing -<br>Area<br>offered for sale | Ongoing -<br>Area<br>not offered for sale | Total | UOM |
|----------------------------------------|------------------------------------------------|---------------------------------------|-------------------------------------------|--------|---------|
| Total Saleable area | 15.12 | 19.81 | 8.39 | 43.33 | Mn.sqft |
| Sobha Share of Saleable area | 14.49 | 18.97 | 7.31 | 40.77 | Mn.sqft |
| Total area sold till 30th<br>June 2021 | 14.02 | 11.59 | - | 25.61 | Mn.sqft |
| Unsold area as on 30th<br>June 2021 | 0.47 | 7.38 | 7.31 | 15.16 | Mn.sqft |
| Balance cost to be spent | - | 48.28 | 31.20 | 79.48 | Rs.Bn |
| Balance to be received from sold units | 1.72 | 41.08 | - | 42.80 | Rs.Bn |
| Sales value of unsold stock | 4.03 | 54.82 | 52.90 | 111.74 | Rs.Bn |
| Cumulative Cash flow available (+ve) | 5.74 | 47.62 | 21.70 | 75.06 | Rs.Bn |
### *Highlights:*
*1. Unsold completed inventory stands at 0.47 million square feet, which will probably be the lowest in the real estate industry.*
*2. Balance receivable from sold ongoing project inventory and completed projects stands at Rs. 42.80 billion which covers 89% of the balance project cost to be spent for ongoing projects offered for sale .*
*^Unsold area sale value is based on estimated selling price in respective projects.*
- ➢ **The second covid wave came all of a sudden in March-21 and it impacted larger number of people than the first covid wave.**
- ➢ **However, Sobha due to its past learnings, planning experience, digital efforts and strong business model remained resilient during Q1-22 and posted better operational performance as compared to Q1-21.**
- ➢ **The sales performance needs to be viewed in the context that lockdown was very stringent in Bengaluru and other operating cities.**
- ➢ **Achieved total sales volume of 895,539 square feet of super built-up area valued at Rs 6.83 billion.**
- ➢ **Total sales value, Sobha share of sale value and total average price realization are up by 40%,45% and 2% respectively as compared to Q1-21.**
- ➢ **Bengaluru sales volume have grown by 37% as compared to Q1-21.**
- ➢ **Operating performance of Gurugram, Kochi, Thrissur, Pune and GIFT CITY was also better as compared to Q1-21.**
# SALES PERFORMANCE: Q1 - 22
| Q1 -<br>22 | | | | | | |
|------------|------------|------------------|------------------------------|------------------------------------|--|--|
| Region | Area Sold | Total Sale Value | Sobha Share<br>of Sale Value | Total Average<br>Price Realization | | |
| | in Sq Feet | in Rs Mns | in Rs Mns | Rs / Sq Feet | | |
| Bangalore | 663,867 | 4,851 | 4,217 | 7,307 | | |
| Gurugram | 67,336 | 647 | 428 | 9,614 | | |
| Chennai | 14,064 | 100 | 100 | 7,117 | | |
| Kochi | 52,833 | 521 | 257 | 9,865 | | |
| GIFT City | 25,873 | 149 | 149 | 5,774 | | |
| Thrissur | 40,152 | 285 | 285 | 7,095 | | |
| Pune | 24,993 | 237 | 237 | 9,494 | | |
| Kozhikode | 2,019 | 12 | 10 | 6,141 | | |
| Coimbatore | 4,402 | 25 | 25 | 5,734 | | |
| Total | 895,539 | 6,829 | 5,709 | 7,626 | | |
**Total Sale Value (in Rs Bn)**
**REGION WISE SALES CONTRIBUTION (Q1 - 22)**
❖ **We continue to see good demand for our luxury products, same trend was witnessed during the recent quarters.**
# BUYER PROFILE: 12 Months Rolling
- ➢ **Total Income for Q1 -22 stands at Rs. 5.17 billion, up by 45% as compared to Q1 -21**
- ➢ **Real Estate Revenue for Q1 -22 stands at Rs. 3.77 billion, up by 69% as compared to Q1 -21**
- ➢ **Contractual & manufacturing vertical revenue for Q1 -22 stands at Rs. 1.36 billion which is up by 7% compared to Q1 -21.**
- ➢ **EBITDA for Q1 -22 stands at Rs. 1.06 billion. Margin at 20%.**
- ➢ **PBT for Q1 -22 stands at Rs. 0.13 billion, up by 133% as compared to Q1-21.**
- ➢ **PAT for the Q1 -21 stands at Rs. 0.11 billion, up by 73% as compared to Q1-21.**
- ➢ **Debt Equity stands at 1.15 as on June 2021 as compared to 1.17 as on March 2021.**
- ➢ **Contractual and manufacturing order book stands at Rs 20.54 billion as on 30.06.2021.**
- ➢ **Average cost of borrowing has been reduced by 66 basis points as on June 2021 compared to June 2020 and stands at 8.98% as of 30th June 2021.**
- ➢ **Out of the cumulative sales done in residential business as on 30.6.2021, there is a balance revenue of Rs. 68.87 billion to be recognised in our books of accounts.**
- ➢ **Revenue recognition is expected to improve in the coming quarters with increase in handover of the units.**
- ➢ **Despite increase in input costs, we are confident to maintain our margins.**
- ➢ **With increment in construction activities and sales number driven by new launches, we expect to perform better across all parameters.**
# FINANCIAL HIGHLIGHTS: Q1-21 V/s Q1-22
*Amount in Rs. Billions*
-
Q1-21 Q1-22
| | | | Amount Rs.in Millions |
|-------------------------------------|-------|-------|-----------------------|
| PARTICULARS | Q1-22 | Q1-21 | FY-21 |
| Real Estate Revenue | 3,768 | 2,229 | 13,103 |
| Contractual & Manufacturing Revenue | 1,355 | 1,271 | 7,995 |
| Other Income * | 48 | 66 | 499 |
| Total Income | 5,171 | 3,566 | 21,597 |
| Total Expenditure | 4,116 | 2,475 | 16,689 |
# PROFIT & LOSS STATEMENT
*Amount Rs.in Millions*
# **EBIDTA 1,055 1,091 4,908** EBIDTA Margin 20% 31% 23% Depreciation 175 189 794 Finance Expenses \*\* 754 849 3,362 **Profit Before Tax 126 54 752** Tax Expenses (Provision) 18 (12) 129 **PAT after share of associates 108 66 623** Other comprehensive income (net of tax expense) 6 0.13 7 **Net Profit 114 66 630**
# CONSOLIDATED BALANCE SHEET
### *Amount Rs.in Millions*
| PARTICULARS | 30'June 2021 | 30'June 2020 | PARTICULARS | 30'June 2021 | 30'June 2020 |
|-------------------------------------------------|--------------|--------------|-------------------------------------|--------------|--------------|
| ASSETS | | | EQUITY & LIABILITIES | | |
| Non-current assets | | | Equity | | |
| Property, Plant and equipment | 4,348 | 4,552 | Equity Share Capital | 948 | 948 |
| Investment Property | 3,494 | 3,468 | Other Equity | 23,442 | 23,431 |
| Investment Property under construction | 759 | 0 | Total Equity | 24,390 | 24,379 |
| Right of use assets | 145 | 116 | | | |
| Intangible assets | 231 | 232 | Non-Current Liabilities | | |
| Financial assets | | | Financial Liabilities | | |
| Investments | 1,143 | 1,143 | Borrowings | 3,368 | 2,365 |
| Trade Receivables | 441 | 217 | Lease liabilities | 59 | 49 |
| Other Non-current financial assets | 1,445 | 98 | Provisions | 155 | 154 |
| Other non-current assets | 5,168 | 5,179 | Deferred tax liabilities (net) | 349 | 188 |
| Current tax assets (net) | 95 | 116 | TOTAL | 3,931 | 2,756 |
| Deferred tax assets (net) | 23 | 22 | | | |
| TOTAL | 17,291 | 15,143 | Current Liabilities | | |
| | | | Financial Liabilities | | |
| Current Assets | | | Borrowings | 26,087 | 28,153 |
| Inventories | 71,605 | 67,482 | Lease liabilities | 60 | 74 |
| Financial Assets | | | Trade payables | 6,692 | 8,028 |
| Trade receivables | 2,159 | 2,457 | Other Current financial liabilities | 6,374 | 5,450 |
| Cash and cash equivalents | 1,543 | 772 | Other current liabilities | 44,363 | 40,557 |
| Bank balance other than Cash & cash equivalents | 424 | 267 | Liabilities for current tax (net) | 20 | 315 |
| Other Current financial assets | 5,207 | 8,331 | Provisions | 138 | 142 |
| Other current assets | 13,826 | 15,402 | | | |
| TOTAL | 94,764 | 94,711 | TOTAL | 83,733 | 82,719 |
| | | | Total Liabilities | 87,664 | 85,475 |
| TOTAL ASSETS | 112,055 | 109,854 | TOTAL EQUITY & LIABILITIES | 112,055 | 109,854 |
| Financial Liabilities | | |
|-----------------------|--------|--------|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Total Liabilities | 87,664 | 85,475 |
| | | |
| CITY | COMPLETED | ONGOING | FORTHCOMING |
|-------------|-----------|---------|-------------|
| Bengaluru * | 47.20 | 16.83 | 7.01 |
| Mysore | 1.33 | 0.25 | - |
| Gurugram | 2.10 | 3.47 | 1.75 |
| Delhi | - | - | - |
| Kochi | - | 3.95 | - |
| Thrissur * | 2.90 | 1.50 | 0.60 |
| Kozhikode | - | 1.09 | 0.64 |
| Trivandrum | - | - | - |
| Chennai | 1.68 | 1.37 | 0.29 |
| Coimbatore | 3.73 | 0.32 | - |
| Hosur | - | - | 1.31 |
| GIFT City | - | 0.81 | 0.32 |
| Pune | 1.20 | 0.94 | - |
| Hyderabad | - | - | 0.64 |
| Total | 60.14 | 30.53 | 12.56 |
Total Developable / Leasable Area in Mn sqft
- ➢ Completed Real Estate projects located across **7 cities**, with Total development of **60.14 mn sqft** and Super Built-up area of **45.59 mn sqft**
- ➢ Under construction projects located across **10 cities,** with Total developable area of **30.53 mn sqft** and Super Built-up area of **19.81 mn sqft**
- ➢ Forthcoming residential projects located across **8 cities,** with and super Built-up area of **12.56 Mn sqft.**
- ➢ **\***(includes) Proposed Commercial projects in Bangalore and Thrissur with Total Leasable Area of **0.29 and 0.03 mn sqft** respectively
### **Note:**
- Real Estate product mix includes Multi Storied Apartments (Dreams, Luxury, Super Luxury & Presidential category), Row Houses, Villas, Plotted Developments & Club House Facilities etc.
- Developed / Developable area includes super built-up area (SBA) / saleable area to the customer plus common area, car parking area, service area, storage area, internal roads and common amenities.
| LOCATION | No of Projects | Total Saleable area (Mn Sft) | | | | | |
|------------------------------|----------------|------------------------------|--|--|--|--|--|
| Real Estate -<br>Forthcoming | | | | | | | |
| Bangalore | 8 | 6.72 | | | | | |
| Chennai | 1 | 0.29 | | | | | |
| Hosur | 1 | 1.31 | | | | | |
| Gurugram | 1 | 1.75 | | | | | |
| Thrissur | 1 | 0.57 | | | | | |
| Hyderabad | 1 | 0.64 | | | | | |
| GIFT City | 1 | 0.32 | | | | | |
| Trivandrum | 1 | 0.64 | | | | | |
| Sub Total | 15 | 12.24 | | | | | |
| Commercial Portfolio (Total Leasable Area) | | | |
|--------------------------------------------|---|------|--|
| Bangalore | 1 | 0.29 | |
| Thrissur | 1 | 0.03 | |
| Sub Total | 2 | 0.32 | |
| | | | |
**Grand Total 17 12.56**
## **Forthcoming Launch Pipeline : Ongoing Projects - RERA registration status :**
**Location No of projects applied for RERA No of projects approved by RERA Bangalore** 74 74 **Mysore** 1 1 **Gurugram** 6 6 **Pune** 3 3 **GIFT City** 1 1 **Chennai** 4 4 **Coimbatore** 1 1 **Thrissur** 3 3 **Kozhikode** 2 2 **Kochi** 4 4 **Total 99 99**
• 99 projects registered under RERA and all 99 projects approval received.
| Unsold Area from Area offered for sale in Ongoing<br>projects | 7.38 mn sft |
|---------------------------------------------------------------|--------------|
| Unsold area from ongoing projects -<br>not offered for sale | 7.31 mn sft |
| Future Launches | 12.24 mn sft |
| TOTAL INVENTORY AVAILABLE FOR SALE IN FUTURE | 26.93 mn sft |
### **Note:**
- Above mentioned forthcoming launches are from our existing land bank. Balance land payments will be made through our internal accruals and not through any fresh debt.
- Saleable area for the forthcoming projects may change based on final approvals.
# CONTRACTS PORTFOLIO
# **Overall area delivered since inception: 53.74 million square feet**
**Order book value as of 30th June 2021: Rs 20.54 billion**
**Contractual Ongoing Project Details as of 30th June 2021**
**Contractual Revenue & Collection Details as of 30th June 2021**
| Sl<br>No | Location | Built-up area<br>(Mn Sqft) |
|----------|--------------|----------------------------|
| 1 | Bangalore | 1.53 |
| 2 | Bhubaneshwar | 0.01 |
| 3 | Cochin | 0.09 |
| 4 | Indore | 0.37 |
| 5 | Nagpur | 0.41 |
| 6 | Pune | 0.07 |
| 7 | Trivandrum | 2.76 |
| Total | | 5.24 |
*Amount in Rs. Billions*
| Particulars | Q1 -<br>22 | Q1 -<br>21 |
|---------------|------------|------------|
| Revenue | | |
| Contracts | 0.80 | 0.90 |
| Manufacturing | 0.57 | 0.37 |
| Total | 1.37 | 1.27 |
| Collections | | |
| Contracts | 1.05 | 1.36 |
| Manufacturing | 0.65 | 0.75 |
| Total | 1.70 | 2.11 |
# CONTRACTS: Completed Projects region wise contribution details
# MANUFACTURING DIVISION PERFORMANCE
- *SOBHA – Only Real Estate Company in India with Aatma Nirbhar (Self-Reliant) Model*
- *It supports company to achieve world class quality with timely & efficient delivery*
| Glazing & Metal | Works Division | | Interiors<br>& Furnishing Division | | Concrete Products Division |
|-------------------------------------------------------------------------------------------------------------------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
| Turnover<br>(Q1-22):- | Rs. 0.31 Bn | Turnover<br>(Q1-22):- | Rs.<br>0.13 Bn | Turnover<br>(Q1-22):- | Rs. 0.13 Bn |
| No. of Employees | 113 | No. of Employees | 164 | No. of Employees | 16 |
| Factory Area | 0.30 Mn sqft | Factory Area | 0.80 Mn sqft | Factory Area | 0.40 Mn sqft |
| PRODUCTS:-<br>➢<br>Metal/Steel fabrication works<br>➢<br>Aluminum doors & windows, structures<br>➢<br>Glass works | | PRODUCTS:-<br>➢<br>doors, windows, paneling, cabinets,<br>cupboards & loose furniture.<br>➢<br>Manufacture of Economy, Deluxe, Super<br>Deluxe & Premium Mattresses from<br>furnishing division | Manufacturing wood based products such as | PRODUCTS:-<br>➢<br>Manufacture of wide range of concrete<br>products such as concrete blocks, pavers,<br>kerbstones, water drainage channels, paving<br>slabs and elite landscape products<br>➢<br>Glass Fiber Reinforced Concrete | |
Note: \*All divisions turnover represents net revenue excluding inter division sales & GST
23
# COMMERCIAL PORTFOLIO: Completed and forthcoming projects
| Project Name | Status | % of area Leased | Total Leasable Area<br>(in sqft) | Sobha Share of Leasable<br>Area (in sqft) |
|-----------------------------------|-------------|------------------|----------------------------------|-------------------------------------------|
| Sobha City Mall, Thrissur | Completed | 94% | 338,493 | 258,247 |
| One Sobha, Bangalore | Completed | 80% | 225,334 | 150,974 |
| Sub Total | | | 563,827 | 409,221 |
| Sobha City Athena, Bangalore | Ongoing | - | 28,863 | 28,863 |
| Sub Total | | | 28,863 | 28,863 |
| Yadavanahalli, E.City Bangalore | Forthcoming | - | 292,723 | 292,723 |
| Metropolis -<br>Phase 2, Thrissur | Forthcoming | - | 27,607 | 27,607 |
| Sub Total | | | 320,330 | 320,330 |
| Grand Total | | | 913,021 | 758,414 |
# **Sobha City Mall, Thrissur – Completed 1 Sobha, Bangalore- Completed**
# SOBHA DREAM ACRES PROJECT STATUS
| | Total Developable Area Launched | 7.43 mn sqft | Total SBA launched for sale as on June –<br>2021 | 5.66 mn sqft |
|----------------------------------------------------------------------------------|---------------------------------|--------------|--------------------------------------------------|--------------|
| | | | Total SBA Sold till June –<br>2021 | 5.39 mn sqft |
| Area Completed till June -<br>2021<br>5.12<br>mn sqft<br>Percentage sold<br>95 % | | | | |
### **Sobha Dream Acres Wing 25 & 26, Bangalore Sobha Dream Acres Wing 36 Bangalore**
# ONGOING PROJECTS
# **Sobha Royal Pavilion Wing 3-7, Bangalore Sobha Forest Edge, Bangalore**
# ONGOING PROJECTS: (Contd)
# COMPLETED RESIDENTIAL PROJECTS DURING Q1-22:
# BOARD OF DIRECTORS
**Ravi PNC Menon Chairman**
- Over 16 years of experience in the real estate and construction business
- Bachelor of Science in Civil Engineering from Purdue University, USA
**J.C. Sharma Vice Chairman & Managing Director**
- Over 38 years of experience in diversified industries such as automobiles, textiles, steel & real estate.
- A qualified Chartered Accountant and Company Secretary with a Bachelor's degree in Commerce (Honors) from St Xavier's college, Calcutta
**R.V.S. Rao Independent Director**
- Over 48 years of experience in the areas of banking and finance
- Bachelor's degree in Commerce from Mysore University and a Bachelor's degree in law from Bangalore University institutions
**Anup Shah Independent Director**
- Over 36 years of experience in the field of law, specifically real estate law.
- Degree in law from the Government Law College, Mumbai
**Sumeet Jagdish Puri Independent Director**
- Over 24 years of experience in Global Investment Banking
- MBA from S.P. Jain Institute of Mgmt. & Research, Mumbai & Bachelor's degree from Sydenham Institute of Management Studies, Research and Entrepreneurship.
**T.P. Seetharam Whole-time Director**
- Distinguished service as a career diplomat for 36 years, retired as Ambassador of India to UAE
- IFS from 1980 batch and MA in English Literature from Madras Christian College
**Srivathsala Kanchi Nandagopal Independent Director**
- A serial entrepreneur, Founder of 4 Organizations, with Businesses spanning across Angel Investing, Financial planning for HNIs and Strategic Business advisory
- Certified Financial Planner from ICAI besides holding Masters in Commerce from Bangalore University
# MILESTONES
- ➢ **Started by the Founder Chairman Shri PNC Menon for "the joy of giving", long before CSR became a mandatory requirement, SOBHA Limited spends much more than the stipulated percentage of its profits on its much-lauded initiatives.**
- ➢ **CSR, for SOBHA Limited is a sustainable, long-term contribution to social development in rural India.**
- ➢ **Sobha has identified 4,525 families (17,311 persons) belonging to three panchayats in Palakkad District of Kerala as beneficiaries through an elaborate scientific poverty mapping exercise by its Social Empowerment Department.**
- **I) Educational Initiatives : -**
- **A. The SOBHA Academy, established in 2007 is a world class CBSE English medium school which has 1,115 students during academic year 2020-21 from LKG to Class 12.**
- **B. SOBHA Icon Higher Secondary Programme, which commenced in 2013, has both Science and Commerce streams with 30 admissions in each class. As of March 2021, 160 students have become graduates through Sobha Icon, securing scholarships worth over 9.5 crores from various universities.**
**II) Healthcare Initiatives : - SOBHA Health Care , established in 2007 provides free consultation, diagnosis, tests, treatment and medicines are provided by a dedicated medical team including specialists, equipped with necessary state of the art facilities. 7057 outpatients were treated during 2020-21. An outreach programme has also been initiated to extend post-Covid, palliative and other supportive care to those not in a position to travel to the Health Centre.**
- **III) Other social activities : -**
- **A. SOBHA Hermitage is a comfortable home for senior citizens and widowed mothers and their children with all necessary amenities and personalised care.**
- **B. SOBHA Dowry-less Social Wedding Programme has seen 647 young women from economically disadvantaged families married, with the Trust meeting all costs and providing much needed counselling support.**
- **C. SOBHA Community Centre hosts various initiatives such as medical camps, orientation and training classes.**
- **D. Care is taken to cater to the real needs of the community, while adapting to the circumstances such as the ongoing Covid pandemic by switching to online classes and adopting protocols and practices that give primacy to the welfare and benefit of all.**
# CORPORATE SOCIAL RESPONSIBILITY (Contd)
# **THANK YOU**
## **SOBHA Corporate Office - Bangalore**
Sobha Limited. 'SOBHA', Sarjapur-Marathahalli Outer Ring Road(ORR), Devarabisanahalli, Bellandur Post, Bangalore-560103 Phone: +91-80- 49320000, Fax: +91-80- 49320444 Web : www.sobha.com
### **Investors Contact :**
Mr.Subhash Mohan Bhat Chief Financial Officer Mobile: +91-80-49320000 Ext. 5026 Email: [[email protected]](mailto:[email protected])
Mr. Tejus Singh Investor Relations Mobile: +91-80-49320000 Ext. 5302 Email: [[email protected]](mailto:[email protected])
#### Disclaimer:
The information in this presentation contains certain forward-looking statements and publically available data from various recourses such as research reports, publications etc. These include statements regarding outlook on future development schedules, business plans and expectations of Capital expenditure. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from projections made by the company.
#### **For immediate publication**
### **Emerging stronger - Building sinews**
#### **Bengaluru, August 14, 2021:**
Sabha Limited announced its unaudited financial results today for the pt Quarter of Financial Year 2021-22.
Indian economy is projected to grow by 9.5% in FY 2022 as per RBI estimate. This high number comes on the low base of the previous year when the economy had contracted by 7.3% due to COVID. Even with 9.5% growth in FY 2022, the economy would only be recording a minor uptick from the FY 2020 level of GDP. As the Indian economy has begun to open up, there is a growing belief that economic momentum will gather pace.
However, Residential real estate sector has been showing encouraging signs of structural revival. Large number of people are getting used to concepts like - work from home, work near home, digitally enabled spaces, and larger living spaces. Suddenly we see our lives centering around our own living spaces. This new reset is expected to stay for long. The role of organized players in real estate sector will become more significant. Those who have been delivering high quality homes, in time and with transparency will become more important. This augurs well for a well entrenched player like SOBHA.
Like past many quarters, in this quarter also Sabha has performed well on all the operational parameters due to our self- reliant business model, strong brand equity and established track record for delivery on time with transparency.We are well poised to face these uncertain times and emerge stronger along with market share gain.
Below are major highlights of the quarter:
#### **Cashflow Highlights:**
- ► Achieved total cash inflow of Rs. 7.18 billion during Ql-22 which is up by 31% as compared to Ql-21.
- ► Achieved Real Estate Cash inflow of Rs 5.48 billion during Ql-22 which is up by 63% as compared to Ql-21.
- ► We have generated Net Operating Cashflow of Rs 1.34 billion during Ql-22. The same is up by 44% as compared to Ql-21.
- ► Net debt got reduced by Rs 0.36 billion during the quarter.
- ► Our borrowing cost has come down during the Quarter and stands at 8.98 % as on 30.06.2021.
### **Sales Highlights:**
- ► Achieved total sales volume of 895,539 square feet of super built-up area valued at Rs 6.83 billion.
- ► Total sales volume, sale value, Sobha share of sale value and total average price realization are up by 38%,40%,45% and 2% respectively as compared to Ql-21.
- ► Bengaluru sales volume has grown by 37% as compared to Ql-21 despite stringent impact of covid second wave during the quarter.
- ► During the quarter, Bengaluru, Gurugram, Kochi, Thrissur, Pune and GIFT CITY have done quite well as compared to Ql-21 despite impact of COVID second wave.
### **Financial Highlights:**
- ► Total Income for Ql -22 stands at Rs. 5.17 billion up by 45% as compared to Ql-21
- ► Real Estate Revenue for Ql -22 stands at Rs. 3.77 billion up by 69% as compared to Ql-21
- ► Contractual & manufacturing vertical revenue for Ql-22 stands at Rs. 1.36 billion which is up by 7% compared to Ql-21.
- ► EBITDA for Ql-22 stands at Rs. 1.06 billion. Margin at 20%.
- ► PBT for Ql-22 stands at Rs. 0.13 billion, up by 133% as compared to Ql-21.
- ► PAT for the Ql-21 stands at Rs. 0.11 billion up by 73% as compared to Ql-21.
**Speaking on the occasion, Mr. J C Sharma, Vice Chairman and Managing Director, SOBHA Limited said,** "Despite the adverse impact of covid second wave during the quarter, we remained resilient due to our strong backward integrated business model which resulted in good operational performance across all the operating ciities.Cashflows during the quarter remained healthy which resulted in net debt reduction.With stable demand outlook,low interest rates, increased vaccination ,cost control measures,efficient cash flow management and planned new launches across various cities, we remain positive and confident to perform better on all parameters in the coming quarters."
**Exceptional Execution:** Sobha's superior execution capability is its core strength. The company currently has ongoing real estate projects aggregating to 30.53 million square feet of developable area and 19.81 million square feet of saleable area, and ongoing contractual projects aggregating to 5.24 million square feet under various stages of construction. As on 30th June 2021, the company has delivered about 113.88 million square feet of developable area. The company has a real estate presence in 10 cities, viz. Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gujarat (Gift City) and Mysore. Overall, SOBHA has footprint in 27 cities in 14 states across India.
**About SOBHA Limited:** Founded in 1995, SOBHA Limited is one of the fastest growing and foremost self-reliant real estate players in the country. It means that 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. The Company's residential projects include presidential apartments, villas, row houses, super luxury & luxury apartments, plotted developments and aspirational homes. In all its residential projects, the company lays strong emphasis on environmental
management, water harvesting and highest safety standards. On the contractual projects 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. Details about company financials can be found through the given link below:
htt ps://www .so bha . co m/i nvesto r-re latio ns-i nvesto r-prese ntatio n. p hp
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### **For further information, please contact:**
### **SOBHA Limited**
Tejus Singh Head-Investor Relations.
Off: +91 80 49320000- Ext. 5302, [email protected]