PREPARING FOR
SCALE
ANNUAL REPORT 2024
From humble beginnings, our journey untold, A saga of quality, a legacy bold.
Passion at work, our guiding light,
Transforming quality, in our sight.
World-class and on-time, our hallmark tale, SOBHA strides, preparing for scale.
Expanding horizons, reaching new shores, We venture forth, where opportunity roars.
For we know, in the journey we trail,
Success is also measured by the hearts we avail.
A commitment to give, a commitment to prevail, SOBHA stands tall, preparing for scale.
ANNUAL REPORT 2023 - 2024 | 1 | |
Contents
01 | Financial04 | Statements - | |
Preparing for Scale | Standalone | ||
26 | Chairman's Message | ||
28 | Board of Directors | 163 | CEO and CFO Certification |
30 | Board Committees | 164 | Independent Auditors' Report |
30 | Corporate Information | 181 | Standalone Financial Statements |
31 | Directors' Report | 185 | Notes to the Standalone Financial Statements |
43 Corporate Governance Compliance Certificate
05 | |||||
Corporate02 | Financial Statements - | ||||
Responsibility | Consolidated | ||||
95 | Corporate Governance Report | 260 | Independent Auditors' Report | ||
274 | Consolidated Financial Statements | ||||
119 | Share Price Performance | ||||
278 | Notes to Consolidated Financial Statements | ||||
Management03 | Report | Annual06 General | |||
122 | Markets and Operating Environment | Meeting | |||
136 | Operational and Financial Analysis | 355 | Notice Of Annual General Meeting | ||
143 | Management Discussion and Analysis | 366 | Explanatory Statement Annexed To Notice | ||
144 | Projects and Work Done in 2023-24 | 368 | Key Details of 29th AGM at a Glance | ||
147 | Environment, Health and Safety | ||||
150 | Corporate Social Responsibility | Additional07 | |||
155 | Research and Development | ||||
156 | Employees | Information | |||
158 | Risk Management Report | 369 | Glossary | ||
370 | Fiscal 2024 - Quarterly Highlights |
DISCLAIMER
In this Annual Report, some of the information disclosed may appear forward-looking in nature. This report and other statements-written and oral- that we periodically make contain forward-looking statements that set out anticipated results based on the management's plans and assumptions. We have tried wherever possible to identify such statements by using words such as 'anticipates', 'estimates', 'expects', 'projects', 'intends', 'plans', 'believes', and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOBHA Ridge-Whispering Hill, Thiruvananthapuram (Artist's Impression)
SOBHA Neopolis, Bengaluru (Artist's Impression)
4 ANNUAL REPORT 2023 - 2024
Preparing for Scale
A Legacy of Quality, A Vision for Tomorrow
At SOBHA, the past year has been a testament to our commitment to continuous improvement, focusing on efficiency, and unwavering dedication to excellence. As a trusted name in Indian real estate, we have consistently delivered high-quality projects on time and with transparency. This dedication has been the cornerstone of our success, earning us a position as one of the most admired real estate brands in the country.
The Indian residential real estate sector witnessed a remarkable boom in FY 2023-24, defying global economic headwinds. Sales surged to a decadal high, with nearly 5 lakh units sold - a 30% increase year-on-year. This growth was fuelled by a confluence of factors: supportive policy reforms, rising disposable income, and a shift in consumer preferences towards larger homes with better amenities. Upgraded infrastructure in major cities further opened new doors for development. This surge in demand, coupled with limited inventory, has also led to a rise in property prices. The pandemic played a crucial role in this shift, with homeownership now viewed as a primary need rather than just an investment.
The market remains robust, with homebuyers valuing quality and timely delivery - hallmarks that SOBHA has consistently delivered.
Our self-reliant business model lies at the heart of this success. We ensure control over every stage, from the initial design to the final, high-quality structure. Our in-house teams are constantly innovating to meet the evolving
needs of our discerning customers. This commitment to staying ahead of the curve has enabled us to establish a strong presence in 27 cities across India, with a footprint that continues to expand strategically.
As we solidify our presence and reputation, we remain grounded in our values and purpose. Through initiatives like the SOBHA Academy and our CSR efforts, we invest in the future, nurturing talent, and making a positive societal impact. Our focus on quality, timely delivery, and sustainability underscores our commitment to creating lasting value for our customers, stakeholders, and the communities we serve. This commitment will hold us in good stead as we enter a period of anticipated multi-year growth in the Indian housing market. With India's urban population projected to reach 600 million by 2030, substantial long-term housing demand is inevitable.
Looking ahead, SOBHA is strategically positioned to capitalise on emerging opportunities and challenges as we prepare for scale. Our relentless commitment
to excellence, coupled with our robust operational model and steadfast dedication to customer satisfaction, will continue to propel us forward.
As we embark on the next phase of our journey, we remain resolute in our pursuit of excellence, innovation, and sustainable growth, all in preparation for scale.
ANNUAL REPORT 2023 - 2024 | 5 | |
The SOBHA Advantage
SOBHA stands as the most esteemed and dependable real estate brand in the country today, a testament to the visionary leadership of Mr. PNC Menon, who founded the company in 1995 in Bengaluru. Mr. Menon's legacy of constructing palaces for royalty in the Middle East laid the foundation for his vision to transform the way people perceive 'Quality'.
Guided by five core values - International Quality, Passion, Reliability, Transparency, and Integrity - SOBHA's ethos revolves around these principles, serving as its moral compass. The company's unwavering focus on quality, timely delivery, customer centricity, transparency, robust engineering, in-house research, and uncompromising business ethics has propelled its growth from a regional entity to a national real estate powerhouse.
Presently, SOBHA has a presence in the residential segment across 12 cities. Overall, the company's footprint extends to 27 cities in 14 states across India. While residential real estate development remains the primary focus, SOBHA has diversified into related businesses, including commercial real estate development, contracting services for both institutional and commercial clients, and manufacturing of building materials. The company also has diversified into the retail business with spring mattresses under the brand name 'SOBHA Restoplus' and 'metercube', a one-stop destination for modern lifestyle furniture and home décor.
Central to our commitment to delivering high- quality homes on time and with transparency is our unique backward integration model, the subject of a Harvard Case Study. This model enables unparalleled control over every facet of the construction process, from design conception to final execution.
The foundation of this approach lies in SOBHA's in-house expertise. A dedicated Design and Architecture team crafts functionally efficient and aesthetically pleasing spaces, prioritising sustainability, and environmental friendliness. SOBHA's
skilled workforce meticulously translates these designs into reality, further bolstered by a team of landscaping professionals who create vibrant outdoor spaces.
Substantial investments have been made in developing internal expertise and competencies across critical construction activities. The company's Environmental and Engineering department ensures optimal value engineering and environmental considerations throughout the development process. SOBHA's in-house MEP (mechanical, electrical, and plumbing) division possesses expertise across all facets of building services, providing turnkey solutions and specialised consulting services.
Finally, SOBHA's manufacturing facilities, encompassing concrete products, glazing and metal works, and interiors, provide a reliable source of high-quality materials, further solidifying our commitment to quality and control. The company conforms to international certifications and standards.
Complementing this set-up is our vast and strong workforce, embodying the spirit of 'Passion at work' that permeates through every Sobhaite across all locations and operations. We place a lot of emphasis on human resource development, of which skill enhancement and advancement are paramount. All our technicians and project staff undergo mandatory and rigorous training at SOBHA Academy, Bengaluru. The academy trains craftsmen, engineers, and supervisors in different modules. Continuous training
is imparted on-site to ensure knowledge building, skill upgrading, and high-quality execution.
This comprehensive approach - a blend of visionary leadership, core values, a diversified portfolio, a commitment to backward integration, and investment in our people - positions SOBHA for exceptional growth in the years to come. As we prepare for scale, these very elements will serve as the foundation for a thriving future.
6 ANNUAL REPORT 2023 - 2024
Creating Benchmarks
136.25546
Mn sft completed | Developments |
738.37
Mn sft annual delivery run | Mn sft under |
rate in the past 3 years | development |
2725+
Cities and 14 states | Acres manufacturing |
across India | facilities |
3,800+10,900+
Professionals | Technicians |
As of March 31, 2024
ANNUAL REPORT 2023 - 2024 | 7 | |
Crafting Masterpieces
Real Estate
SOBHA is constantly setting benchmarks and delivering exceptional international quality across its entire portfolio. The company maintains the industry's highest standards by focusing on exceeding customer expectations and achieving excellence in design, construction, and delivery. Complete control over product quality and timely delivery is exerted through SOBHA's backward integration model, which involves continuously developing all the necessary skill sets in-house.
Its real estate vertical encompasses both residential and commercial developments. Having completed 206 developments totalling 77.10 million square feet as of March 31, 2024, it has established a significant presence in
12 cities, including Bengaluru, Mysuru, Gurugram, Chennai, Coimbatore, Thrissur, Kochi, Kozhikode, Thiruvananthapuram, Hyderabad, Pune, and Gandhinagar. In the residential sector, SOBHA offers a diverse range of options, including luxury and super luxury apartments, villas, row houses, townships, and plotted developments. SOBHA's commercial developments include SOBHA City Mall, Thrissur and 1 SOBHA, Bengaluru, with a total leasable area of 0.55 million square feet.
The in-house team of passionate professionals brings ingenuity to processes, placing equal
SOBHA Rajvilas, Bengaluruemphasis on incorporating environmentally friendly measures while ensuring continuous
improvement and innovation in projects.
8 ANNUAL REPORT 2023 - 2024
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Sobha Limited published this content on 15 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2024 16:51:02 UTC.