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Sobha rises on strong Q1 sales

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Capital Market
Last Updated : Jul 07 2022 | 12:04 PM IST

Sobha surged 8.29% to Rs 632.50 after the realtor said it achieved highest ever quarterly sales volume of 1.36 million sft in Q1 FY23, up by 51.7% year-on-year (YoY).

As compared with Q4 FY22, the company's sales volume has risen by 1.21%.

Total sales value was at Rs 1,145.5 crore in Q1 FY23, up 67.7% YoY and up 3.24% QoQ.

Sobha said that it recorded highest ever share in the sales value since inception, rising by 66.7% to Rs 951.7 crore in Q1 FY23 from Rs 570.9 crore in Q1 FY22. Sequentially it has increased 1.8% from Rs 935.2 crore reported in Q1 FY23.

Total average price realization improved to Rs 8,431 per square feet as against Rs 7,626 per square feet in Q1 FY22 and Rs 8,265 per square feet in Q4 FY22. The average price rise is backed by price increases across ongoing projects, the company said.

Bengaluru sales volume & value have been the highest ever since inception on the back of 3 new project launches, Sobha said.

The company added that the cash flows remained healthy during the quarter resulting in further net debt reduction.

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Sobha further added, "We have continued our calibrated price increases in all projects & cities to counterbalance the inflationary forces. Despite increase in prices, higher homes loan rates, demand for our homes continues to be strong across segments, particularly in Bengaluru and Gurugram. Improved visibility of GIFT city has seen increased demand for our projects. With the aid of new launches in Bengaluru, consistent sales velocity in ongoing projects, we have achieved the highest ever sales volume, value and price realization in this quarter."

Sobha is primarily focused on residential and contractual projects. Its residential projects include presidential apartments, villas, row houses, super luxury & luxury apartments, plotted developments and aspirational homes.

The real estate developer's consolidated net profit rose 51.4% to Rs 27.70 crore on 32.2% increase in net sales to Rs 731.60 crore in Q4 FY22 over Q4 FY21.

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First Published: Jul 07 2022 | 10:52 AM IST

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