Sobha Developers (Sobha) 3QFY15 revenues of Rs 6.8bn were in line with our est. of Rs 6.9bn led by real estate revenues of Rs 5.0bn. However, cost overruns of Rs 340mn booked across projects during the quarter led to QoQ EBITDA decline of 8% to Rs 1.5bn with EBITDA margins declining 486bps YoY and 246 bps QoQ to 22.5% (est. 25%).