Sobha rose 5.80% to Rs 640 at 11:18 IST on BSE after the company said total sales value increased by 92% to Rs 750.90 crore in Q3 December 2017 over Q3 December 2016.
The announcement was made after market hours on Friday, 5 January 2018.Meanwhile, the S&P BSE Sensex was up 205.25 points, or 0.60% to 34,359.10.
On the BSE, 2.44 lakh shares were traded in the counter so far, compared with average daily volumes of 30,000 shares in the past two weeks. The stock had hit a high of Rs 687 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 621.45 so far during the day. The stock hit a 52-week low of Rs 256.40 on 31 January 2017.
According to an operational update, Sobha sold 9,33,365 square feet (sq ft) area in Q3 December 2017, up 52% from 6,13,652 sq ft in in Q3 December 2016.
The average price realisation increased 26.31% to Rs 8,045 per sq ft in Q3 December 2017 from Rs 6,369 per sq ft in in Q3 December 2016.
Besides Bengaluru, Sobha has real estate projects in Gurgaon, Chennai, Kochi, Thrissur, Calicut, Coimbatore, Mysore and Pune.
Sobha expects that it would be able to sustain this improvement in operational performance in the coming quarters as well.
In Q3 December 2017, the company launched two projects in Bengaluru and Thrissur, with a combined saleable area of 0.98 million sq ft.
On the real estate sector, Sobha said it was a difficult phase as sales and new launches were subdued. However, with the prices stabilising over the last few years and home loan interest rates at a decade low, buying a home has never been attractive in the last 15 years or so, Sobha said. Going forward, the company expects the real estate sector to consolidate and witness revival.
On a consolidated basis, Sobha's net profit rose 30.99% to Rs 50.30 crore on 19.85% growth in net sales to Rs 646.60 crore in Q2 September 2017 over Q2 September 2016.
Sobha Group is one of the largest real estate organisations in India and the Middle East.
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