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Sobha reports record sales bookings in Q4FY21 despite Covid woes; stk up 8%

The company reported record sales bookings of Rs 1,072 crore during the last quarter of fiscal year 2020-21

Sobha | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

real estate, realty, construction, sales, people, flats, buildings, concrete, vendors, developers, builders
In Q4FY21, the company’s gross sales volumes stood at 1.34 million square feet

Shares of real estate company gained 8 per cent and hit an intra-day high of Rs 465 on the BSE on Tuesday after the company said it has reported record sales bookings of Rs 1,072 crore during the last quarter of fiscal year 2020-21 (Q4FY21) despite the Covid-19 pandemic. Its sales bookings stood at Rs 695 crore in the Q4FY20 financial year.

In Q4FY21, the company’s gross sales volumes stood at 1.34 million square feet, up 48 per cent year on year (YoY) in volume terms, driven by a healthy uptick in Bengaluru and continued momentum in Kochi/Gurugram

The company said Q4FY21 has been the best-ever quarter in the history of the company on all the operational parameters. The company’s foray into multiple regions is yielding results with market share gains across all the operating cities. "Due to consistent demand across all the product segments at sustainable prices, the company was able to achieve the best-ever price realization of Rs 8,014 per square feet amongst last 8 quarters," it said.

The company further said, low cost availability of home loans with income tax benefits is pushing demand for homes including the larger homes. "However, uncertainties of second Covid-19 wave and its impact is yet to be assessed. Similarly, increase in input cost also needs to be monitored. Sobha, due to its unique self-reliant business model, will be able to face any such future challenges," it added.

Analysts at ICICI Securities note that the company had earlier guided for achieving YoY growth in H2FY21 sales bookings (reported 25 per cent volume growth) on the back of new launches and monetisation of existing inventory. While sales volume recovery is positive, key monitorable will debt-equity of the company (at ~1.2x as on Q3), which has not seen any major reduction, they said.

At 10:10 am, the stock was trading 7 per cent higher at Rs 459 on the BSE, as compared to a 0.51 per cent rise in the S&P BSE Sensex. It hit a 52-week high of Rs 495 on January 13, 2021. A combined 533,000 equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.

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First Published: Tue, April 06 2021. 10:13 IST