Sobha Ltd shares dipped as much as 6.80 per cent on Monday after the realty firm on Friday (post market hours) reported 47 per cent decline in consolidated net profit at Rs 32.1 crore for the quarter ended December 2015 due to lower sales. The Bengaluru-based developer had posted a profit of Rs 60.1 crore in the year-ago period.
At 1.44 pm, shares of Sobha were trading 4.81 per cent down at Rs 271.40. The scrip opened at Rs 275.05 and had touched a high and low of Rs 277.40 and Rs 265.70, respectively, in trade so far.
Later, the scrip closed 5.89 per cent down at Rs 268.30.
Income from operation fell by 41.70 per cent to Rs 399 crore during the third quarter of this fiscal from Rs 684.4 crore in the corresponding period of the previous fiscal.
Operating profit of Sobha Ltd fell 28.56 per cent year-on-year to Rs 111.80 crore in October-December period.
In the past one year, the share price of Sobha Ltd tanked 38.55 per cent to Rs 285.10 on February 5, 2016. On the other hand, Sensex slid 14.68 per cent during the same period.
JM Financial in a research note said, “Sobha reported disappointing 3Q earnings as collections and revenue recognition declined in real estate segment. Launch of Dream Series in 4Q15 continued to support operating performance. However, lack of launches and decline in contractual activity impacted performance on multiple counts.”