Sobha Ltd - Q3FY2022-23 Operational Update

The Indian economy has been steady in the second quarter of the year, with consistent growth, inflation inching down and with the lowest interest rate increase by RBI of 0.35% in this year. Although there are mixed signals of global economy, domestic economic activity & consumer spending seems to be stable, which is reflected in the country's monthly GST collections. 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 the consistent theme we have witnessed in the past couple of years. Adoption of our home designs to cater to this demand across cities has helped us in improved sales volume and higher realizations.

Q3 FY-2023 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, our projects from other cities have contributed 40% of the total sales volume, one of the highest in recent years. Gurgaon has achieved its highest ever quarterly sale, aided by launch of new towers. Kerala and GIFT City have been consistent in their sales. We believe diversification in multiple regions, with presence in 11 cities, through long term investments are enabling the growth. Our 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.

Key Operational Highlights of Q3-FY23

- Achieved highest ever quarterly sales volume of 1.47 mn sft, with an increase of 10.4% compared to Q2-FY23 and 11.6% compared to Q3-FY22

- Achieved highest ever quarterly sales value of Rs. 14.25 billion, with improvement of 22.4% over Q2-FY23 and 36.0% compared to Q3-FY22

- Sobha's share of sales value is highest ever at Rs. 11.11 billion, with increase of 15.6% compared to Q2-FY23 and 22.4% compared to Q3-FY22

- Average Price realization improved to Rs. 9,650 /sft, up by 10.8% compared to Q2-FY23 and 21.9% from Q3-FY22

Key Operational Highlights of 9M-FY23

- For period of 9M-FY23 we achieved total sale of 4.17 mn sft, an increase of 16.9% over 9M-FY22

- Corresponding sale value achieved was Rs. 37.34 billion, up by 35.3% compared 9M-FY22

- Sobha's share of sales value was Rs. 30.24 billion, higher by 29.6% compared to 9M-FY22

- Average Price realization improved to Rs. 8,952 /sft, up by 15.7% compared to 9M-FY22

Shares of Sobha Limited was last trading in BSE at Rs. 568.05 as compared to the previous close of Rs. 582.30. The total number of shares traded during the day was 6066 in over 622 trades.

The stock hit an intraday high of Rs. 583.90 and intraday low of 564.50. The net turnover during the day was Rs. 3448745.00.

Source : Equity Bulls

Keywords

Sobha INE671H01015 Realty OperationalUpdate Q3FY23 9MFY23