Sobha rose 6.40% to Rs 941.65 after the real estate developer's consolidated net profit surged 198.15% to Rs 48.30 crore on 56.92% rise in net sales to Rs 819.10 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, profit before tax (PBT) surged 183.41% year-on-year to Rs 64.90 crore in Q2 September 2021.The company said that the housing sector continues to follow its growth trajectory with healthy traction and strong demand momentum across segments and geographies. The company's all time high new sales bookings exhibited a strong performance during the quarter followed by healthy cash flows. This has enabled Sobha to continue with its stellar run in this quarter as well.
Sobha achieved best ever quarterly sales volume of 13,48,864 square feet of super built-up area valued at Rs 1030 crore. It achieved best ever Sobha share of sale value of Rs 854 crore.
Total sales volume, sale value, Sobha share of sale value are up by 51%, 49%, 61%, and respectively compared with the same quarter last year.
Total sales volume, sale value, Sobha share of sale value are up by 51%, 51%, 50%, and respectively as against Q1 June 2021.
During the quarter, Bengaluru has performed well which is the firm's key market followed by good performance in Gurugram, Pune and GIFT CITY.
The company achieved total cash inflow of Rs 914 crore during Q2-22 which is up by 33% as compared to Q2-21. It achieved real estate cash inflow of Rs 725 crore during Q2-22 which is up by 44% as compared to Q2-21. The company has generated net operating cashflow of Rs 177 crore during Q2-22. The same is up by 37% as compared to Q2-21.
The company's net debt has shrunk by Rs 39 crore during the quarter despite dividend payment. Its borrowing cost too has reduced during the quarter and stands at 8.85% as on 30 September 2021. The firm said its expected real estate net cashflow at project level is Rs 7213 crore from current ongoing and completed projects.
Sobha's debt equity stands at 1.13 as on 30 September 2021 as against 1.15 as on 30 September 2020.
Contractual & manufacturing vertical revenue for Q2-22 stands at Rs 165 crore. The segment order book stands at Rs 2280 crore as on 30 September 2021.
J C Sharma, vice chairman and managing director, Sobha said, "Our all time high sales volume achieved during the quarter is very encouraging. We expect to sustain the momentum along with gain in market share. We are moving in the right direction with confidence. The real estate sector has been continuously exuding signs of optimism as the fear of COVID -19 wanes away gradually. The pandemic did take its toll but also threw up AI based technologies that created a convenient environment for buyers and developers. This emergence and acceptance of Proptech has redefined the real estate sector in India today. The credible builders with a proven track record of delivery excellence stand to gain immensely. It has augured well for Sobha."
He further added, "The innumerable interactions between the developers and the buyers have moved to online platforms bringing in seamlessness in business transaction and ease of doing so. This shift has made the young Indian generation and NRis the vital emerging prospective home buyers. There is definitely an urgent need for all credible developers to bring in best practices towards making quality homes, deliver on time with transparency and authenticity. This responsible behaviour alone will ensure long term sustainability to the sector with immense respectability that it deserves."
Sobha is primarily focused on residential and contractual projects. Its residential projects include presidential apartments, villas, row houses, super luxury & luxury apartments, plotted developments and aspirational homes.
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