Sobha Q3 Review - Strong Cash Flows But Concern On High Net Debt Remains: Nirmal Bang
Residential buildings stand in Noida, Uttar Pradesh, India (Photographer Anindito Mukherjee/Bloomberg)

Sobha Q3 Review - Strong Cash Flows But Concern On High Net Debt Remains: Nirmal Bang

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Nirmal Bang Report

We were pleasantly surprised by the relatively strong operating cash flow despite an 4% YoY decline in collections of Sobha Ltd.

Cash flow from operations (CFO) increased from Rs 594 million in Q3 FY20 to Rs 1,819 million in Q3 FY21.

The CFO post interest and tax stood at Rs 947 million in Q3 FY21 compared to negative cash flow of Rs 334 million in Q3 FY20.

We remain concerned about the high net debt of Rs 29.75 billion as of Q3 FY21. The net debt to equity ratio stood at 1.23 times in Q3 FY21.

Click on the attachment to read the full report:

Nirmal Bang Sobha-Q3FY21 Result Update-16 February 2021.pdf


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