Sobha bucks trend after Q3 business update

Sobha rose 0.68% to Rs 406.95 after the company announced operational update for Q3 December 2019.

Sobha, post market hours on Friday, said it achieved new sales volume of 1,066,022 square feet valued at Rs 726 crore, with a total average realisation of Rs 6,811 per square feet. Sobha's share of sales value is at Rs 608 crore.

The total sales volume is up by 17% in Q3 December 2019 compared to Q3 December 2018. The figure is up by 9% during 9 months of FY2019 compared to 9 months of FY2018.

Total sale value is up 4% during Q3 December 2019 as compared to Q3 December 2018 and by 6% compared with Q2 September 2019. Total average price realization during Q3 December 2019 rose 3% compared to Q2 September 2019 and is expected to move upwards, as the company sees good sales traction in its luxury and super luxury ongoing projects across cities.

"Bengaluru has contributed 77% of total sales volume in this quarter along with meaningful contribution from other regions. Demand remains consistent in all the cities where we operate. With sufficient unsold inventory in ongoing projects coupled with planned new launches of 10.46 million square feet in the coming quarters, we expect the sales volume to grow in future. This is expected to translate into better operational and financial performance. During the quarter, we have received a new contractual order to the tune of Rs 196 crore," the company said.

Sobha is a real estate brand in India. It has made several developments in Bangalore, Kerela, Delhi - NCR, Chennai, Coimbatore, Mysore and Pune.

The company's consolidated net profit rose 9.1% to Rs 67 crore on 19% jump in net sales to Rs 783.90 crore in Q2 September 2019 over Q2 September 2018.

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