Sobha Q2 net profit jumps nearly 3-fold; sales at all time high

Sobha Q2 net profit jumps nearly 3-fold; sales at all time high

Shares of realty firm Sobha jumped as much as 10% in early trade in Mumbai on Tuesday as the company posted a close to three-fold jump in consolidated net profit in the July-September quarter to Rs 48.3 crore on a year-on-year basis. Its net profit stood at Rs 16.2 crore in the year-ago period.
The realty firm announced plans to raise Rs 140 crore through the issue of debentures.
Total income also increased to Rs 832.3 crore in the second quarter of this fiscal year, from Rs 545.9 crore in the corresponding period a year ago.

This came on the back of the best ever quarterly sales volume of 1,348,864 square feet of super built-up area valued at Rs 1,030 crore. The company’s cost of raw materials consumed reduced 5% to Rs 45 crore in the September quarter, compared to the year ago period.
Its land purchases at cost skyrocketed to Rs 56.5 crore in Q2FY22 from Rs 20 lakh in the immediately preceding quarter and from Rs 5.5 crore in Q2 FY21, indicating new projects and revival of demand for housing after the two waves of the pandemic.

During the quarter, Sobha launched two residential projects –‘Sobha Manhattan’ in Bengaluru and ‘Sobha Arbor’ in Chennai with a built-up area of 875,242 square feet and 286,689 square feet, respectively. Apart from Bengaluru, which is a key market for the company, Gurugram, Pune and GIFT CITY regions also showed promise in Q2 for Sobha.
The company’s completed unsold inventory stands at 4 lakh square feet as of September end. Its net debt has shrunk by Rs 39 crore during the quarter despite dividend payment and borrowing cost stands at 8.85%.
Bengaluru-based Sobha Ltd is one of the leading real estate developers in the country.

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