Stock Report

Sobha Ltd - Q3FY22 Operational Update

Posted On : 2022-01-07 21:50:07( TIMEZONE : IST )

Indian economy is currently going through the fear of a possible third wave of the pandemic which has posed uncertainty and temporary disruption of economic activities. Massive vaccination drive across the country is expected to reduce the impact of the third wave and likely lockdown across the country. As 2022 begins, a series of developments, ranging from Budgetary announcements to continuation of stimulus measures to monetary policy, will set the tone for the domestic economy, which is projected to grow more than 9 per cent in the current fiscal ending March 2022. The Reserve Bank of India maintained its accommodative stance throughout the year along with record-low interest rates in a bid to support the nascent recovery.

During FY 21-22, barring the impact of first quarter, real estate sector has performed well and demand continues to show encouraging trends. Demand consolidation towards reputed developers, disciplined new homes supply, changing attitudes of consumers towards home ownership with preference for bigger-better flats and faster adoption of digital technologies by developers were some of the trends witnessed during the year that augured well for the overall growth of the Indian real estate sector.

In this background, we are pleased to inform that Sobha has reported another good quarter and achieved sustained sales volume and sale value with improved price realization. Bengaluru, which is our primary market has shown outstanding sales performance during the quarter. Gurugram, Pune and GIFT CITY have also performed well during the quarter and as a result for nine months they have already crossed sales volumes achieved during FY 20-21. The Kerala region sales performance was subdued due to sustained covid restrictions and impact of flood. We expect performance to improve in the coming quarters.

Key Operational Highlights-Q3-22

Achieved quarterly sales volume of 1,322,684 square feet of super built-up area valued at Rs 10.48 billion.
Achieved best ever Sobha Share of sale value of Rs 9.08 billion during the quarter.
Total sales volume, sale value, Sobha share of sale value are up by 17%, 18%, 34% respectively as compared to Q3-21.
Average price realization during the quarter has grown by 4% as compared to Q2-22.
Bengaluru sales volume has grown by 20% and 22% as compared to Q2-22 and Q3-21 respectively.
Gurugram sales volume has grown by 97% as compared to Q3-21.
During the quarter, we have launched 'Sobha Avalon' residential project in GIFT CITY with super builtup area of 329,550 square feet.
Cash flow remains healthy during the.quarter which has resulted in further net debt reduction.
Our average cost of borrowing has also come down during the quarter.

Key Operational Highlights-9M-22

hieved highest ever nine months total sales volume and sale value of 3,567,087 square feet and Rs.27.61 billion respectively.
Achieved best ever Sobha Share of sale value of Rs 23.33 billion.
Achieved highest ever Sales volume in Bengaluru during 9M-22.
Total sales volume, sale value, Sobha share of sale value are up by 33%, 34%, 46% respectively as compared to 9M-21.

Shares of Sobha Limited was last trading in BSE at Rs. 853.25 as compared to the previous close of Rs. 851.20. The total number of shares traded during the day was 21664 in over 1513 trades.

The stock hit an intraday high of Rs. 863.40 and intraday low of 849.65. The net turnover during the day was Rs. 18517538.00.