Sobha Ltd - Real Estate Operational Update - Q2 FY2023-24

India recorded a GDP growth of 7.8% in the first quarter with Real Estate sector growing at 8.7%. We have witnessed the strong growth momentum in the Real Estate sector carried through Q2 of FY24 as well. The steadiness of our economy is being witnessed in the form of consistent doubledigit growth in GST collections, surge in Capital Expenditure spending and credit growth. The pause in interest rate hikes and inflation hovering close to RBI's target rates, is providing a sense of certainty, and is reflected in strong consumer confidence, including in home buying.

The sustained job-creating economic growth has led to migration to urban areas of the country and particularly to Metros and Tier-I cities. This increased population growth has led to higher demand for homes. Additionally, requirement for larger residential homes is on the rise as hybrid work from home culture has become mainstay for most of the service sector related jobs.

In this backdrop of a positive economic environment and with high operational focus, SOBHA has recorded its highest ever sales quarter with an area of 1.69 mn sft and sales value of Rs. 17.24 billion in Q2 FY24 with an average price realization of Rs. 10,223 per sft. Bangalore has achieved its highest ever sale value of Rs. 9.32 billion, with over 1 mn sft in area. Kerala region has achieved higher sale value in the first half of this year than in the entire FY 2023, assisted by release of new inventory in existing projects. GIFT City projects witnessed remarkable growth, recording their best quarter. Gurgaon continued with its steady performance capitalizing on our established presence.

The summarized operational performance for the quarter ended Sept 30, 2023, is given below:



Key Operational Highlights of Q2-FY24

- Recorded highest ever quarterly sales value of Rs. 17.24 billion, up 48.1% compared to Q2-23
- Historically highest quarterly new sales area of 1.69 mn sft, growth of 26.1% over Q2-23
- SOBHA's share of sales value was Rs. 12.76 million, also highest ever, up 32.7% from Q2-23
- Average Price realization was at Rs. 10,223 per sft, growth of 17.4% compared to Q2-23
- Milestone achieved of quarterly sales of over 1,000 homes

Shares of Sobha Limited was last trading in BSE at Rs. 662.80 as compared to the previous close of Rs. 697.05. The total number of shares traded during the day was 70284 in over 2983 trades.

The stock hit an intraday high of Rs. 695.95 and intraday low of 642.70. The net turnover during the day was Rs. 46686540.00.

Source : Equity Bulls

Keywords

Sobha INE671H01015 RealEstate OperationalUpdate Q2FY2024