Real estate developer Sobha on Saturday reported a 75% year-on-year decline in its consolidated net profit to Rs 17 crore for the September quarter of the current financial year as the company managed operations amid macroeconomic uncertainties thrown up by Covid-19 and a July lockdown in Bengaluru, which accounts for a major share of its sales.
However, on a sequential basis, the Bengaluru-based company’s net profit rose over twofold from Rs 7 crore in the April-June quarter of FY21, a period when the country was under a stringent lockdown and business activities came to a virtual standstill.
Sobha’s consolidated income during Q2 FY21 fell 32% YoY to Rs 546 crore while on a Q-o-Q basis, the income was up 52% from Rs 359 crore in Q1 FY21. “We have achieved total sales volume of 8.92 lakh sqft valued at Rs 690 crore, with an average price realisation of Rs 7,737 per sqft during Q2 FY21, despite lockdown being imposed in Bengaluru in July and without any new project launch during the quarter,”the company said in a release.
“We have achieved total cash inflow of Rs 686 crore during the quarter, which is up by 25% as compared to Q1 FY21. We have generated net operating cash flow of Rs 130 crore and Rs 222 crore during Q2 FY21 & H1 FY21, respectively, despite tough operating environment. Our cost of borrowing continues to fall from last many quarters and currently stands at 9.32%,” it added. Sobha’s ebitda for Q2 FY21 stands at `128 crore, ebitda margin stands at 23%.
“We have successfully completed 25 years in the real estate space in India. All these years, we have established ourselves as one of the leading household brands in the sector.
The ongoing pandemic and resultant crisis have opened up certain avenues on operational front for businesses like ours. With some green shoots visible in consumer spending, we are hopeful that the inherent demand for quality homes will help us to perform well during second half of FY-21,” said, Sobha managing director J C Sharma.
The company currently has ongoing real estate projects aggregating to 38.52 million sq ft (MSF) of developable area and 26.81 MSF of saleable area, and ongoing contractual projects aggregating to 9.48 MSF under various stages of construction.