Sobha spurts about 35% in five sessions

Shares of Sobha hit an upper circuit limit of 10% at Rs 176.20, extending gains on strong buying support.

The stock has jumped 34.56% in five sessions from its recent closing low of Rs 130.95 on 27 March 2020.

Real estate firm Sobha on Friday (3 April) said total new sales volume decreased by 19.8% to 9.06 lakh square feet in Q4 March 2020 over Q4 March 2019.

Sales volume inched up 1% to 40,71,704 square feet in the year ended March 2020 compared with 40,29,779 square feet in the year ended March 2019.

Total sales value fell 25% to Rs 694.5 crore while Sobha's share in total sales declined by 22% to Rs 553.6 crore on a year-on-year basis.

The company's average price realisation rose by 12.58% to Rs 7,668 per square feet in Q4 March 2020 from Rs 6,811 per square feet recorded in Q3 FY20. Average price realisation, however, declined 5.94% during the quarter compared with Rs 8,152 in Q4 March 2019.

The company said that sales volume for Q4 FY20 had been impacted due to lockdown announced by Government. Despite that, the company has been able to achieve some amount of sales during the lockdown period due to effective use of technology and innovative sales and marketing strategy.

Bengaluru had contributed 73% of the company's total sales volume during Q4 FY20 along with meaningful contribution from other regions. Demand remains consistent in all the cities where it operates. Gurugram sales volume has grown by 67% as compared to Q3 FY20. Due to good demand in the luxury and super luxury segment, Sobha's average price realisation have risen in Q4 FY20 as compared to Q3 FY20.

"We are also pleased to inform that the contracts and manufacturing vertical has delivered a strong performance during FY 19-20, resulting in highest ever billing and cash inflow. This validates the strength of Sobha's business model. Order book as on 31 March 2020 also remains healthy, which gives good visibility for the future growth. Despite tough environment, we were able to manage our cash flows, resulting in the reduction of net debt during Q4 FY20. Our average interest cost as on 31st March 2020 has also come down as compared to 31 December 2019. We remain committed to launch 14.09 million square feet of projects in various cities in the coming quarters," Sobha said in the regulatory filing.

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

On a consolidated basis, the company's net profit rose 7.2% to Rs 76.20 crore on a 13.7% rise in net sales to Rs 876 crore in Q3 December 2019 over Q3 December 2018.

Powered by Capital Market - Live News