Sobha remains subdued

Realty company, Sobha is pretty volatile today with the stock opening lower at Rs.455 and going down an intra day low at Rs.422.55. Volumes are up over four times. Though it has come off these low levels, it is less than one percent in the red currently.

The stock is down after the company yesterday, after market hours, announced an update on the real estate operations of the company for the quarter ended December 31, 2014. Stating a subdued Q3, the company said that during the quarter it achieved sales of 661,451 sq.feet, valued at Rs.427 crore, with an average realisation of Rs 6,456 per square feet. The company pre-launched 2 projects admeasuring total saleable area of 0.67 million square feet.

The company stated that demand across the muted with sluggish pace of project approvals in the southern markets of Kerala and Tamil Nadu, which affected the saleability of projects for developers across the spectrum. Bangalore continued to hold ground, accounting for majority of the new sales. The company, based on these numbers is not too confident about achieving the guidance it had set for itself for FY15 – guidance of 4 million sq.feet sale, till 9MFY15 it sold only 2.25 million sq.feet.