Sobha Q3 Review - Strong Cash Flows But Concern On High Net Debt Remains: Nirmal Bang
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
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:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.