Sobha Ltd - Real Estate Operations Update for the quarter and year ended March 31, 2023

India has been a bright spot in the world economy with a growth of 7.0% spurred by domestic consumer expenditure in 2022-23. Our country's standout economic growth has come amidst high inflationary pressures, concerns on global economic growth and geopolitical uncertainties. Continued structural reforms by the Indian government with emphasis on infrastructure & capacity building, high consumer confidence and moderation of inflation augurs well for the future.

In this positive economic environment, SOBHA has achieved its highest ever annual sales of Rs. 51.98 billion, 5.65 mn sft with an average price realization of Rs. 9,200/sft. We have successfully launched nine residential projects with total saleable area of 3.96 mn sft and started operations in two new cities - Trivandrum and Hyderabad during FY 2023.

In Q4 of FY23, the company has once again recorded its best ever sales quarter with a value of Rs. 14.63 billion and saleable area of 1.48 mn sft. We launched our first project in Hyderabad, SOBHA Waterfront, in this quarter. Overall, three projects were launched with a cumulative saleable area of 1.06 mn sft during the quarter. Consistent sales of Sobha's homes across geographies including new cities showcases our brand strength and efficiency in sales & marketing operations.

Key Operational Highlights of Q4-FY23

- Achieved highest ever quarterly sales value, up by 2.7% over Q3-FY23 and 31.9% compared to Q4-FY22

- Highest ever sales volume at 1.48 mn sft, which grew by 0.2% compared to Q3-FY23 and 10.1% over Q4-FY22

- Average Price realization improved by 2.5% over previous quarter Q3-FY23 to Rs. 9,898 / sft; 19.8% growth over same period last year Q4-FY22

- Sobha's share of quarterly Sales value of Rs. 12.07 billion is also at historical highest; up by 8.7% from previous quarter and 29.1% compared to Q4-FY22

- Bangalore sales volume was up by 4.4% and contributed 62.9% to the overall area sold

Key Operational Highlights of FY23

- Achieved highest ever annual sales volume of 5.65 mn sft, growth of 15.1% over FY22

- Corresponding sales value achieved was Rs. 51.98 billion, up by 34.3% compared FY22

- Sobha's share of sales value was highest ever at Rs. 42.31 billion, up by 29.2% from FY22

- Average Price realization for entire FY23 was up by 16.7% compared to overall FY22

- Launched residential projects comprising 3.96 mn sft of SBA, compared to 1.69 mn sft in FY22

New project launches in Q4-FY23

We have launched 3 new residential projects in the quarter with total SBA of 1,061,249.01 sft. Two of the projects are in Bangalore and the third one is our first project in Hyderabad.

- SOBHA Waterfront - This is luxury apartment project located in Somajiguda, the heart of Hyderabad city, overlooking famous Hussain Sagar Lake. It is being developed in 4.03 Acres and comprises of 4 towers with a total saleable area of 654,661.23 sft. The project consists of spacious 3 BR and 4 BR apartments between 1,948 sft to 3287 sft.

- SOBHA Galera - A rowhouse project located in East Bangalore, spread over 4.08 acres. The project comprises of 40 row houses with total saleable area of 131,101.64 sft with 4 BR homes ranging from 3,009 sft to 4,341 sft.

- SOBHA Oakshire - A rowhouse project located next to SOBHA Lifestyle, close to Bangalore International airport. The project comprises of 80 row houses in 8.86 acres comprising with a saleable area of 275,486.14 sft. The 4 BR rowhouses range from 3,447 sft to 3,467 sft.

Shares of Sobha Limited was last trading in BSE at Rs. 450.25 as compared to the previous close of Rs. 442.05. The total number of shares traded during the day was 37200 in over 2053 trades.

The stock hit an intraday high of Rs. 453.00 and intraday low of 438.25. The net turnover during the day was Rs. 16660807.00.

Source : Equity Bulls

Keywords

Sobha INE671H01015 Realty RealEstate OperationsUpdate Q4FY23