Sobha’s Q3 FY21 net profit declines 72%, but posts best ever quarterly sales , price realisation

By: |
February 13, 2021 1:00 AM

The company’s consolidated revenue fell 23% y-o-y to Rs 696 crore in Q3 FY21, however on a quarter-on-quarter (q-o-q) basis, it rose 27% from Rs 546 crore in Q2 FY21. It reported an Ebitda of Rs 138 crore, up 8% q-o-q, and an Ebitda margin of 20%.

On the brighter side, Sobha achieved its best ever quarterly sales volume of 1.13 million sq ft (MSF) of super built up area valued at Rs 888 crore.On the brighter side, Sobha achieved its best ever quarterly sales volume of 1.13 million sq ft (MSF) of super built up area valued at Rs 888 crore.

Bengaluru-based Sobha on Friday reported a 72% year-on-year (y-o-y) decline in its consolidated net profit at Rs 21 crore for the October-December quarter this fiscal. On a sequential basis, net profit was up 24%. However the real estate developer posted its best ever performances in terms of quarterly sales volume and average price realisation.

The company’s consolidated revenue fell 23% y-o-y to Rs 696 crore in Q3 FY21, however on a quarter-on-quarter (q-o-q) basis, it rose 27% from Rs 546 crore in Q2 FY21. It reported an Ebitda of Rs 138 crore, up 8% q-o-q, and an Ebitda margin of 20%.

On the brighter side, Sobha achieved its best ever quarterly sales volume of 1.13 million sq ft (MSF) of super built up area valued at Rs 888 crore. It also achieved an average price realisation of Rs 7,830 per sq ft during Q3 FY21, its highest in the last 6 quarters, or two years.

Sobha vice chairman and managing director, JC Sharma said, “We are happy to announce that we have achieved our best ever pre-sales performance during the quarter. Highest ever pre-sales volume has been achieved followed by higher price realisation witnessed during the recent quarters. This is due to the continued efforts during uncertain and tough operating environment. Digital marketing continues to play a crucial role and is yielding the expected results. We believe that the trend is sustainable backed by number of enquiries crossing the pre-Covid level, and a healthy conversion of enquiry-to-sales”.

The company’s net debt stood at Rs 2,975 crore in Q3 FY21 against a debt of Rs 3,050 crore in Q2 FY21. The firm’s cost of borrowing currently stands at 9.17%.

“Bengaluru has returned to normalcy and has contributed 69% of the total sales volume along with meaningful contribution from other regions especially Gurgaon, Kerala and Pune, due to our strong brand equity, delivery track record and world class product offerings,” Sobha said.

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