Sobha Ltd - Real Estate Operations Update for the quarter ended June 30, 2023

Sobha Ltd has announced update on the real estate operations of the Company for the quarter ended June 30, 2023.

India's Real Estate sector has high correlation with the country's economic growth and hence is a direct beneficiary of being the fastest growing major economy. India's GDP touched USD 3.75 trillion in FY 2023, with a growth of 7.2% amidst geopolitical conflicts and increasing interest rate regime. The momentum of heightened economic activity continued into the first quarter of FY 2024, reflected in robust GST collections and expectation of above 6% growth in this financial year (fastest among G-20 nations).

In this backdrop, we continue to witness sustained demand for our homes, across our cities of operations. Our geographical diversification enabled us to maintain the sale momentum and SOBHA has achieved highest ever quarterly sale value of Rs. 14.65 billion, with a growth of 27.9% over Q1-23 and marginal increase over Q4-23. This was achieved with the highest ever price realization of Rs. 10,506 per sft on total saleable area of 1,394,117 sft.

Bangalore has contributed 54% to the total sale value, with improved price realization and product mix moving more towards luxury segment. Kerala region sales have witnessed significant improvement of 55% growth over previous quarter with release of new inventory in Marina One in Kochi and SOBHA Metropolis in Thrissur. NCR has continued to do well with an established market presence. Demand for GIFT City projects is on the rise with improved development and visibility.

Key Operational Highlights of Q1-FY24

- Achieved highest ever quarterly sale value of Rs. 14.65 billion, up by 27.9% compared to Q1-23

- Highest average price realization of Rs. 10,506 per sft, registering growth of 24.6% compared to Q1-23 and 6.1% compared to previous quarter Q4-23

- SOBHA's share of sale value was Rs. 11.28 million

- Total sales volume is at 1.39 mn sft, with a growth of 2.6% over Q1-23

- Released inventory of 779,876 sft in our ongoing projects, mainly in Kerala projects

- Completed construction of 0.97 mn sft of saleable area (624 homes) in the quarter Q1-24

Shares of Sobha Limited was last trading in BSE at Rs. 555.40 as compared to the previous close of Rs. 548.25. The total number of shares traded during the day was 60657 in over 2872 trades.

The stock hit an intraday high of Rs. 559.50 and intraday low of 547.80. The net turnover during the day was Rs. 33650538.00.

Source : Equity Bulls

Keywords

Sobha INE671H01015 Realty RealEstateOperations Q1FY24 Update