Sobha Ltd - Q4 FY2021-22 Real Estate Operational Update

The Indian economy has started gaining momentum in Q4, FY 2022. The growth in housing sector is building on consistent demand prevalent from the past eighteen months, reducing the unsold inventory as well. High customer confidence supported by strong job market in an improving economy, low home loan rates, savings during pandemic period, desire to own a larger & higher quality home are driving this growth.

With this background, we are pleased to inform that, during FY-22 we have achieved best ever sales volume and sale value. This is achieved despite operational hurdles at the start of quarter due to Omicron wave. During FY-22, Bengaluru, Pune, Gurugram, and GIFT City regions have shown high growth in terms of sales value & volume which is the highest ever since inception. Cash flows during the year remains strong resulting in net debt reduction as compared to FY-21. We have improved the price realization from past few quarters, which would act as margin protection against recent cost increase.

KEY OPERATIONAL HIGHLIGHTS Q4-22

- Achieved total sales volume of 1.34 million square feet of super built-up area and highest ever realization of Rs. 11.10 billion.

- SOBHA share of sales value is the highest ever since inception.

- Due to consistent demand across all the product segments and price increase, we were able to achieve best ever price realization of Rs. 8,265 per square feet.

- Sales volume achieved by Gurugram region in this quarter is the highest ever since start of operations in the region.

- During the quarter, we have launched 'SOBHA Brooklyn Towers Wing 3' residential project in Bengaluru with super built-up area of 197,036 square feet.

- Cash flows remained healthy during the quarter resulting in further net debt reduction.

- Our average cost of borrowing has further come down during the quarter.

KEY OPERATIONAL HIGHLIGHTS FY-22

- Achieved best ever sales volume of 4.91 million square feet and sale value of Rs. 38.70 billion.

- SOBHA share of sales value is the highest ever since inception.

- SOBHA share of sales value is up by 32% as compared to FY-21.

- Bengaluru, Gurugram, Pune and GIFT City regions have achieved highest ever sales volume during the FY-22.

- Total Sales volume and sales value were up by 22%, 23% respectively as compared to FY-21.

- Sale volume achieved by Bengaluru, Gurugram, GIFT City and Pune regions during FY-22 have grown by 24%, 83%, 150% and 77% respectively as compared to FY-21.

Shares of Sobha Limited was last trading in BSE at Rs. 712.95 as compared to the previous close of Rs. 709.10. The total number of shares traded during the day was 40462 in over 2374 trades.

The stock hit an intraday high of Rs. 731.95 and intraday low of 709.00. The net turnover during the day was Rs. 29229445.00.

Source : Equity Bulls

Keywords

Sobha INE671H01015 RealEstate OperationalUpdate Q4 FY2022