Sobha gains after Q3 PAT rises nearly 5%

Sobha rose 1.52% to Rs 435.40 after consolidated net profit rose 4.9% to Rs 73.20 crore in Q3 December 2019 from Rs 69.80 crore in Q3 December 2018.

Profit before tax (PBT) in the December quarter (Q3 FY20) stood at Rs 116.40 crore, up 6.2% from Rs 109.60 crore in Q3 December 2018.

Net sales witnessed 12.1% rise to Rs 883.20 crore in Q3 FY20 from Rs 787.90 crore in Q3 December 2018 (Q3 FY19).

Total expenditures declined 5.1% to Rs 596.60 crore in Q3 FY20 from Rs 628.90 crore in Q3 FY19. This was primarily on account of a significant reduction in the development & construction costs which stood at Rs 383.80 crore in the December quarter, down 38.1% YoY.

EBIDTA improved 21.03% to Rs 216.4 crore in Q3 FY20 as compared to Rs 178.8 crore in Q3 FY19. EBIDTA margin stood at 24% in Q3 FY20.

On the operations front, Sobha has achieved total sales volume of 1.07 million square feet valued at Rs 726 crore during the quarter, up by 4% as compared to the same period last year. Total average price realization showed upward trend as compared to Q2 September 2019, as the company saw good sales traction for its luxury and super luxury ongoing projects across cities. Total cash inflow for the quarter stands at Rs 801 crore.

Commenting on the result, J.C. Sharma, vice chairman and managing director, Sobha said, "We are poised to launch real estate projects to the tune of 13.64 million square feet in the coming quarters along with 0.44 million square feet of commercial projects in Bengaluru, which will help us to post better performance in the coming quarters. During 9M-20, we have also witnessed a good performance by our contracts and manufacturing verticals. The revenues grew by 25% as compared to 9M-19. Cash flows and order book remains healthy, offering good visibility for the future."

Sobha is a real estate developer which works in the business of construction, development, sale, management and operation, townships, housing projects, commercial premises and other related activities.

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