Sobha's Q1 sales bookings down by 20% to Rs 482 cr

Sobha is cautious on Gurgaon due to the weak sentiment prevalent in the region as a whole

Realty firm Sobha Developers’ sales booking declined 20 per cent to Rs 482.2 crore during the first quarter of this fiscal due to lower volumes as well as realisations. Its sales bookings stood at Rs 602.8 crore in the same quarter of last fiscal.

In an operational update, Bangalore-based Sobha Developers said the sales volume dropped to 754,000 sq ft during the April-June quarter of 2014-15 fiscal as against 920,000 sq ft in the corresponding period of 2013-14. The sales realisation also dropped to Rs 6,388 per sq ft from Rs 6,548 per sq ft during the period under review.

“The company had not launched any new projects during the quarter and the new sales achieved during the quarter comprise of the projects launched in the previous quarters,” Sobha Developers said. Giving details about company’s performance in the cities where it has presence, Sobha said the Bangalore market continued to be resilient while Pune region has outperformed compared to the previous quarter.

“We remain cautious on Gurgaon due to weak sentiment prevalent in the region as a whole. We anticipate Chennai to gain traction in the coming quarters due to our proposed launches. We also expect the holiday season in Kerala to augment new sales in Thrissur, Kozhikode and Kochi,” it added.

However, Sobha expressed confidence that the multiple launches on anvil would provide a stimulus for the sale momentum. Sobha Developers’ sales bookings rose by about 6 per cent to Rs 2,343 crore in the last fiscal on higher realisation but missed the target of Rs 2,600 crore due to slowdown in demand, especially in the NCR-Gurgaon region.