Sobha stock price drop! Shares fall 5% as Q4 profit falls 86% YoY

Shares of Sobha Ltd fell 4.9 per cent to Rs 1,769.45 apiece on the BSE on Saturday, during the markets' special trading session, after the real estate company reported weak set of results for the March quarter of fiscal 2023-24 (Q4FY24).

On Friday, May 17, Sobha Ltd reported a 85.5 per cent year-on-year (Y-o-Y) slide in Q4 net profit at Rs 7.02 crore as against Rs 48.57 crore reported in the year-ago period.

Sobha Ltd's total income also fell 36 per cent Y-o-Y to Rs 791.25 crore from Rs 1,240.14 crore.

The number missed Street's estimates. Bloomberg had estimated a profit of Rs 52.1 crore for the quarter, while revenue was pegged at Rs 1,180.8 crore.

Consolidated Ebitda declined 46.5 per cent on year to Rs 62.1 crore as against an Ebitda of Rs 115.7 crore reported last year, and Bloomberg's estimate of Rs 143.6 crore.

Margins contracted 150 bps to 8.1 per cent versus 9.6 per cent Y-o-Y. It also missed Street's estimate of 12.2 per cent.

During the year, Sobha Ltd launched six residential projects and registered a growth of 27.8 per cent to Rs 6,644 crore in terms of sales booking. Total sales value, meanwhile, went up just 2.8 per cent to Rs 1,504 crore during the quarter.

Net debt stood at Rs 1,262 crore as of March 2024, as against Rs 1,640 crore in the previous fiscal.

At 9:40 AM, Sobha Ltd stock price was off lows, down 1.3 per cent to Rs 1,838.45 per share as against 0.17 per cent rise in the benchmark S&P BSE Sensex.

Over the past one month, Sobha stock price has surged over 10 per cent, while it has zoomed 108 per cent in six months.

By comparison, the benchmark Sensex was up 13 per cent in six months.