Sobha Q3 profit halves to Rs 32 crore, on poor offtake

Sales drop 42% to Rs 401 cr, as customers put off buying new homes due to economic uncertainty

Realty player Sobha Ltd reported third quarter profits drop 46.6 per cent to Rs 32.1 crore and sales drop by 41.63 per cent to Rs 400.9 crore as customers put off buying new homes due to economic uncertainty.

Sobha had reported profits of Rs 60.1 crore on sales of Rs 686.8 crore in the October to December quarter last year.

Margins calculated as sales minus expenses stood at 27.9 p er cent aided by a reduction of Rs 30.2 crore debt during the quarter.

"The downturn in residential space continued in fiscal 2016 with no imminent trend reversal in sight," said J C Sharma, Vice Chairman and Managing Director in a statement.