Shares of Sobha jumped 4 per cent in Friday’s trade despite the prevailing weak market sentiment after the real estate developer said it achieved highest ever quarterly sales volume of 1.47 million square feet, up 11.6 per cent YoY and 10.4 per cent sequentially.
In a filing to BSE Sobha said it achieved highest ever quarterly sales value of Rs 1,425 crore, rising 22.4 per cent QoQ and 36 per cent YoY. Sobha’s share of sales value was highest ever at Rs. 1,111 billion, up 15.6 per cent QoQ and 22.4 per cent YoY, with average price realisation improving to Rs 9,650 per square feet, up 10.8 per cent QoQ and 21.9 per cent YoY.
Following the development, the stock rose 4.21 per cent to hit a high of Rs 592 on BSE. At the time of writing this story, the BSE benchmark Sensex had fallen over 600 points to sub-60,000 level. This was the third day of fall for the 30-pack index.
“While Bangalore continues to contribute to significant share of real estate sales, our projects from other cities have contributed 40 per cent of the total sales volume, one of the highest in recent years. Gurgaon has achieved its highest ever quarterly sale, aided by launch of new towers. Kerala and GIFT City have been consistent in their sales,” Sobha said.
The developer said diversification in multiple regions, with presence in 11 cities, through long term investments are enabling its growth.
“Our operations in contractual and manufacturing too have witnessed increased demand from corporate and institutional clients. Cash flows were strong during this quarter and has resulted in net debt reduction,” it said.
Sobha said demand for housing continued to be steady despite concerns such as uncertainty in technology sector outlook and higher home loan rates. Sobha said requirement for larger homes has been the consistent theme that it witnessed in the past couple of years. Adoption of home designs to cater to this demand across cities has helped Sobha in improved sales volume and higher realisation, it said.
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