Sobha in the limelight

Sobha released its Q3FY19 quarterly report and the business update is good.

The company has said, “We are pleased to inform you that for the CY 2018 as compared to CY 2017, sales volume and total sale value have grown by 18% and 16% respectively despite tough macro-environment.”

The company during the third quarter has achieved new sales volume of 908,824 square feet total valued at Rs 6,988 million with an average realisation of Rs 7,669 per square feet (SOBHA Share of sales value at Rs 6,002 million with an average realisation of Rs 6,599 per square feet).  Sales volume is up by 11% YoY for nine months.

The total sales value and SOBHA's share of sales value has increased by 7% and 4% YoY respectively for nine months.

The total price realisation and SOBHA's share of price realisation QoQ has increased by 7% and 10% respectively.

During Q3, the company launched a total of projects to the tune of 3,000,297 sft. In the third quarter, the sales in Kochi region improved significantly but witnessed a temporary dip in Gurugram market.  Bengaluru has contributed 68% of total sales volume in this quarter and will continue to play significant role in our overall sales numbers. The demand in Chennai, Coimbatore, Thrissur, Mysore markets have been consistent.

In the next 2-3 quarters, Sobha is poised to launch one more affordable housing project in GIFT City (Gujarat) along with plans for launches in other categories as well in Bengaluru, Chennai, Thrissur and Pune. This is expected to improve its operational performance further.

The market is happy with this news and the stock price rose almost 3% to Rs.454. Its 52-week high and low stands at Rs.687 and Rs.380.50 respectively.