Sobha gains after sales value rises by 36% YoY in Q3; sales volume at 1.48 mn sq ft

Sobha advanced 3.30% to Rs 586.20 after the company's total sales value improved by 36% to Rs 1,424.7 crore in Q3 FY23 from Rs 1,047.5 crore recorded in the corresponding quarter last fiscal.

The Bangalore-based company's share in the sales value was Rs 1,111.2 crore (up 22% YoY).

The real estate developer further informed that the sales volume in Q3 FY23 stood at 1.48 million square feet up by 12% from 1.32 million square feet recorded in Q3 FY22.

Average price realization increased by 22% to Rs 9,650 per square feet in Q3 FY23 from Rs 7,920 per square feet in Q3 FY22.

Sobha said that in the current environment, demand for housing continued to be steady despite concerns like uncertainty in technology sector outlook, higher home loan rates.

Requirement for larger homes has been a consistent theme that the company has witnessed in the past couple of years. Adoption of its home designs to cater to this demand across cities has helped the firm to improve the sales volumes and attain higher realizations.

It further stated that Q3 FY23 has been the best ever sales quarter for SOBHA, both in volume and value. While Bangalore continues to contribute to significant share of real estate sales, the company's projects from other cities have contributed 40% of the total sales volume, one of the highest in recent years.

The company's operations in contractual and manufacturing too have witnessed increased demand from corporate and institutional clients. Cash flows were strong during this quarter and has resulted in net debt reduction.

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 company's consolidated net profit declined 69.6% to Rs 19.2 crore on a 14.4% fall in revenue from operation to Rs 667.3 crore in Q2 FY23 over Q2 FY22.

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