 "Sobha zooms 5% after Q1FY25 results; overall sales value jumps 28% YoY")
Sobha in focus: Shares of real estate developer Sobha surged as much as 4.52 per cent to hit an intraday high of Rs 1,770 per share on Friday, August 9, 2024.
However, at 12:36 PM, shares of Sobha were trading 2.86 per cent higher at Rs 1,741.90 per share. In comparison, BSE Sensex was trading about 1 per cent higher at 79,645.82 levels.
The surge in the share price came after the real estate developer’s overall sales value rose 28 per cent Y-o-Y to Rs 1,874 crore. Sequentially, the overall sales grew 24.6 per cent, compared to Q4FY24.
The company said that Gurgaon contributed 45.5 per cent to the total sales value with Rs 852 crore, marking its highest-ever quarterly sales value, followed by Bangalore, contributing 33.5 per cent to the total sales value in Q1FY25.
Kerala, meanwhile, saw a year-on-year growth of 5.8 per cent. Furthermore, Gift City achieved its highest-ever quarterly sales value, growing 81.2 per cent, compared to Q1FY24.
Additionally, the company also recorded its best ever average price realisation of Rs 15,941 per soiree feet, up 51.7 per cent Y-o-Y.
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Sobha sold 562 units with a total saleable area of 1.17 million square feet across all regions in Q1-25. The company also launched four new residential projects with a total saleable area of 3.04 million square feet.
“Sobha’s strong performance in Q1FY25 was supported by robust housing demand across all our operational markets and a steady focus on efficient execution. This resulted in impressive sales, exceptional real estate collections, and the highest average price realisation of Rs. 15,941 per square fee. A significant portion of this price realisation can be attributed to our shift in inventory mix towards luxury and super-luxury projects. Our strong sales performance demonstrates that customers continue to appreciate SOBHA's high-quality homes.” said said Jagadish Nangineni, managing director of Sobha.
Overall, the company’s consolidated revenue (topline) dropped 29.5 per cent Y-o-Y to Rs 640.3 crore in the June quarter of FY25, from Rs 907.9 crore in the June quarter of FY24. Its profit (bottomline) fell 50 per cent to Rs 6 crore in Q1FY25, from Rs 12 crore in Q1FY24.
Outlook
With a healthy pipeline of 18.30 million square feet of residential projects set to be launched in the coming quarters, the company anticipates further enhancement of its growth trajectory.
Additionally, the recently concluded rights issue will further boost its financial and operational strength, positioning it to capitalise on growth opportunities in India's vibrant economic environment and enter new markets.
Founded in 1995, Sobha is a real estate company that offers international quality homes, and commercial and contractual projects delivered on time, through its backward integration model. The company claims to have cumulatively delivered over 137.68 million square feet of developable area across 27 Indian cities.