Sobha rose 4.42% to Rs 232.70 after the realtor achieved new sales volume of 650,400 square feet valued at Rs 488 crore, with a total average realization of Rs 7,498 per square feet in Q1 June 2020.
Sobha's share in total sales value is at Rs 393.10 crore. The sales volume in Q1 FY21 is down 38.85% compared with the sales volume of 10,63,632 square feet reported in Q1 FY20. Total average realization during the quarter was almost flat compared with Rs 7668 per square feet in Q1 FY20.
"Despite two months of lockdown, disrupted demand outlook, complete washout of economic activities in the real estate sector, we are happy to announce that we were able to clock 70% of sales volume during Q1-21 as compared to Q4-20. We were able to achieve this through online technological tools, our self-reliant business model, customer trust on Sobha brand and unmatched delivery track record. Continuous improvement in our processes, adaptable approach in business, use of technology & online/digital platforms and cost optimization has yielded in good operational performance for the company," the realtor said in a release issued on Saturday, 4 July 2020.
It added that the demand has remained consistent in all the cities where the company operates inspite of uncertainties of the pandemic. Sobha said it continues to enjoy sufficient liquidity from banks/FI to meet its obligations. With continuous focus on efficient cash flow management, the firm was able to reduce its net debt and average interest cost of borrowing during Q1 FY21. This is the second consecutive quarter when Sobha's net debt has reduced.
Bengaluru is amongst the least impacted metros from COVID-19 so far and has contributed 74% of sales volume during Q1 FY21 along with other regions also contributing meaningfully. With more and more companies opting for work from home, inherent demand for better quality homes, low interest rates and other benefits extended by government, demand is likely to sustain in the coming quarters and organized players are expected to perform better. The level of inquiries from customers are now almost back to pre-COVID levels.
On the technical front, the stock's RSI (relative strength index) stood at 59.373. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading between its 50-day moving average (DMA) placed at 210.26 and its 200-day moving average (DMA) placed at 331.78.
The realty firm reported 55.3% fall in consolidated net profit to Rs 50.70 crore on 34.9% drop in net sales to Rs 910.10 crore in Q4 March 2020 over Q4 March 2019.
Sobha is a real estate brand in India. It has made several developments in Bangalore, Kerela, Delhi - NCR, Chennai, Coimbatore, Mysore and Pune.
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