Sobha Q1 PAT spurts 64% YoY to Rs 11 cr

The real estate firm's net profit soared 63.6% to Rs 10.80 crore on 46.4% surge in net sales to Rs 512.30 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).

Consolidated profit before tax jumped 133.30% to Rs 12.60 crore in Q1 FY22 as against Rs 5.40 crore in Q1 FY21. The Q1 result was declared on Saturday, 14 August 2021.

Sobha achieved a total cash inflow of Rs 718 crore during Q1 FY22, rising 31% over Q1 FY21. The company generated a net operating cashflow of Rs 134 crore during Q1 FY22, growing 44% as compared to Q1 FY21. Net debt got reduced by Rs 36 crore during the quarter. Borrowing cost has come down during the quarter and stands at 8.98% as on 30 June 2021.

Sobha achieved a total sales volume of 8,95,539 square feet of super built-up area valued at Rs 683 crore. Total sales volume, sale value, Sobha share of sale value and total average price realization are up by 38%, 40%, 45% and 2% respectively as compared to Q1 FY21. Bengaluru sales volume has grown by 37% as compared to Q1 FY21, despite stringent impact of COVID-19 second wave during the quarter.

During the quarter, Bengaluru, Gurugram, Kochi, Thrissur, Pune and GIFT City have done quite well as compared to Q1 FY21, despite impact of COVID-19 second wave. The real estate revenue for Q1 FY22 stands at Rs 377 crore, rising 69% compared with Q1 FY21. Contractual & manufacturing vertical revenue for Q1 FY22 stood at Rs 136 crore, advancing 7% compared to Q1 FY21. The EBITDA for Q1 FY22 was at Rs 106 crore with a margin of 20%.

J C Sharma, vice-chairman and managing director (MD), Sobha, said, "Despite the adverse impact of COVID-19 second wave during the quarter, we remained resilient due to our strong backward integrated business model which resulted in good operational performance across all the operating ciities. Cashflows during the quarter remained healthy which resulted in net debt reduction. With stable demand outlook, low interest rates, increased vaccination, cost control measures, efficient cash flow management and planned new launches across various cities, we remain positive and confident to perform better on all parameters in the coming quarters."

The company currently has ongoing real estate projects aggregating to 30.53 million square feet of developable area and 19.81 million square feet of saleable area, and ongoing contractual projects aggregating to 5.24 million square feet under various stages of construction. As on 30 June 2021, Sobha delivered about 113.88 million square feet of developable area. The company has a real estate presence in 10 cities, viz. Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gujarat (Gift City) and Mysore. Overall, Sobha has footprint in 27 cities in 14 states across India.

Shares of Sobha slipped 1.81% to Rs 592 on BSE. Sobha is a real estate player primarily focused on residential and contractual projects.

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