Sobha Ltd jumps over 4 per cent on achieving better operational performance
Sobha Ltd, a multinational real estate developer soared over 4 per cent on Thursday after the company announced its operational performance for the quarter ended December 30, 2020.
The company recorded the best ever quarterly sales volume without any major launch during the quarter. It had total sales of 1,133,574 sq ft in Q3FY21, registering a healthy growth of 6.33 per cent YoY as compared to 1,066,022 sq ft in Q3FY20. Being the company’s major market, Bengaluru’s business has returned to normalcy. It contributed 69 per cent of the total sales volume.
The sales volume, total sales value, the company’s share of the sale value and price realisation are up by 6 per cent, 22 per cent, 12 per cent and 15 per cent, respectively as compared to Q3FY20. The total price realisation reached Rs 7,830 per square feet during Q3FY21, achieving the highest price realisation during the past six quarters.
During the quarter, the company launched 'Sobha City - Athena' project in Bengaluru, an extension of the existing Sobha City project. The company expects better sales performance during H2FY21 as against H2FY20 amidst new launches across several cities in the next few quarters and continuing inherent housing demand.
On the debt front, the company’s continuous focus on cash flow management, it was able to manage the net debt levels, finance cost, and other costs during the quarter. Its average interest cost continues to come down as of December 31, 2020 as compared to the previous quarters.
At 10.54 am today, the stock of Sobha Ltd was trading 4.67 per cent higher at Rs 430.10 on BSE. It recorded an intraday high of Rs 439.70 and an intraday low of Rs 427.20 on BSE.