Sobha gallops on robust Q4 business update

Sobha rallied 7.33% to Rs 461.45 after the company's total new sales jumped 47.69% to 13,37,707 square feet in Q4 FY21 over 9,05,710 sq ft. in Q4 FY20.

Total sales value grew 54.35% to Rs 1,072 crore in Q4 FY21 as against Rs 694.50 crore in Q4 FY20. Sobha's share of sales value soared 57.91% to Rs 874.20 crore in Q4 FY21 compared with Rs 553.60 crore in Q4 FY20. Total average price realisation rose 4.51% to Rs 8,014 per sq ft. in Q4 FY21 over Rs 7,668 per sq ft. in Q4 FY20.

Total sales volume, total sales value and total price realisation were up by 18%, 21% and 2%respectively compared with Q3 FY21. Sales volume achieved by Bengaluru, Gurugram, Pune and Kochi regions is the highest ever. Other regions specially Gurugram, Kochi, Thrissur and Pune have seen significant traction in demand sentiments and contributed good sales volumes. Sobha said its average cost of borrowing has further come down during the quarter.

During the quarter, Sobha launched its new luxury residential project, 'SOBHA Windsor' in Whitefield, Bengaluru with super built-up area of 1.35 million square feet. It has also launched a luxury residential project 'SOBHA Metropolis' in Thrissur (Kerala) with super built-up area of 1.17 million square feet, this project also features a commercial space of 27,607 square feet.

Under Development management model, the real-estate firm has launched a plotted development, 'Chartered Woodpecker' in Bengaluru with a total saleable are of 0.25 million square feet. In totality, Sobha has launched 2.77 million square feet of super built-up area in residential business and 0.27 million square feet in commercial space during the quarter.

"We are on track on proposed launches and remain cautiously optimistic in the coming financial year as well," Sobha said in a statement issued after market hours yesterday, 5 April 2021.

Sobha's consolidated net profit tanked 70.5% to Rs 21.60 crore on a 22.5% decline in net sales to Rs 684.40 crore in Q3 FY21 over Q3 FY20.

Sobha is a real estate player primarily focused on residential and contractual projects.

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