HomePress ReleaseHindu Business Line: Realty firm Sobha’s Q1 profit rises 10.3% even as income falls 11.5%

Hindu Business Line: Realty firm Sobha’s Q1 profit rises 10.3% even as income falls 11.5%

BENGALURU: Realty firm Sobha Ltd posted a 10.27 rise in Q1 FY19 profit to ₹52.6 crore on a consolidated basis, against ₹47.7 crore in the same period last year.

Its income from operations fell 11.46 per cent to ₹610.10 crore (₹689.10). EPS for Q1 stood at ₹5.55 (₹4.95).

The company achieved new sales volume of 960,085 sq ft valued at ₹762.40 crore with an average realisation of ₹794.10 per sq ft in Q1.

Commenting on the company’s performance, JC Sharma, Vice-Chairman and Managing Director, said: “This was also the first quarter where the new accounting standard of IND AS 115 was followed by the company, which uses the project completion method instead of the existing percentage completion method.

“While some fluctuations in reporting the income are expected, there is no impact on the company’s cash flow or income tax liability, as the company continues to follow percentage completion method under Income Computation and Disclosure Standards (ICDS) for income tax purpose. In other words, it is a compliance requirement which will not have any impact on the overall business of the company. We are confident that on completion of some of the ongoing projects in this financial year, the overall income growth momentum will be maintained.”