Sobha Ltd Q1 2021 Earnings Call Hosted By ICICI Securities Ltd Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Good job on the sales front, but can you give some comment on potential cancellations that you indicated last time? And how have you treated them in your projected cash flow statement?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. So probable cancellations are now assumed to be actual cancellations, sir?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. Okay. Okay. Great. And second on this -- the same slide, you mentioned Sobha's share of salable area, which was 17.34 ongoing. That seems to have come down from 17.94 in the previous quarter. Why would that happen? I mean, is it something that you shelved as well as...

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. My other question is to do with your balance sheet where you've reported investment property worth INR 3.4 billion. Till last quarter, it was INR 1.8 billion of property and INR 2.3 billion of capital work in progress, which should have totaled up to INR 4 billion, now it's about INR 3.5 billion. Is there any change there as well?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : So -- and there is no work in progress anymore now?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Yes. And then the total should have been INR 4 billion, which is now INR 3.4 billion. So is there some -- is INR 0.5 billion depreciation that you've charged?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. Okay. Okay. So last question is on the EBITDA margin where you had reported 30% EBITDA margin. So can you give some color on -- although I know it's not really fair because it's a different numerator, but still it's substantially better EBITDA margin. What is behind that?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. Okay. And everything, I presume, has gone back to normal from Q2 or not yet? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2020 / 10:30AM, SOBH.NS - Q1 2021 Sobha Ltd Earnings Call Hosted By ICICI Securities Ltd

Question: Abhishek Bhandari - Macquarie Research - Analyst : Sharmaji, I had a question again on this interest part. So if I go to Slide 8 and 9. First of all, what is our rate of interest? Because if our total gross debt is INR 3,100 crores, with roughly 10% interest cost, that's roughly INR 31, INR 32 crores. So what is the breakdown of this remaining INR 50 crore in the finance charges? That's one. And secondly, government is now proposing restructuring of debt for everyone, probably. Do you think you'll want to use that to elongate the tenure of our loans? Yes, that is my question.

Question: Abhishek Bhandari - Macquarie Research - Analyst : Yes. So your gross debt is, sir, INR 3,100 crores, gross debt. If you do a 10%, roughly, the interest cost 9.8%, I'm rounding it off to 10%, that's around INR 31 crore. But...

Question: Abhishek Bhandari - Macquarie Research - Analyst : Sorry, sorry, sir, I got something wrong in my math. Sorry for that, sir. And sir, lastly, what will be the treatment of this interest, what you have not paid? Because will you be -- will you have to pay this in the second half under the RBI regulation that the interest, which is not paid for the first half gets converted into a term loan, which has to be paid off before FY '21?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Yes. A bit more color on these cancellation. So you reported 1.93 million square feet cancellations. So is this -- did this number change as you moved into July? Or has it remained the same?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Is there a risk of this number?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. Okay. This number of whatever booking somebody does gets reported as collections in your cash flows, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2020 / 10:30AM, SOBH.NS - Q1 2021 Sobha Ltd Earnings Call Hosted By ICICI Securities Ltd

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : No, no, no. I meant for the sales since you've recorded this prudent practice of not reporting bookings until you get the full booking amount. Does your collection number include whatever INR 1 lakh or whatever -- yes?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. And my last question is, have you seen -- have you been offering any discounts to customers now?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Because you also mentioned buyers are looking for larger-sized properties given the need for working from home...