Sobha tanks to a new low

Realty company, Sobha Ltd announced its Q2FY17 yesterday evening after market hours and obviously the market was not too enthused.

The company’s consolidated net profit came in very flat at Rs.38 crore v/s Rs.39 crore in previous Q2. This was on a 8% (YoY) rise in total income at Rs.552 crore.

During the quarter, the company achieved new sales of 8,55,662 square feet, valued at Rs.551 crore with an average realization of Rs.6,443 per square feet.

Sobha’s share of sale value stood at Rs.518 crore with an average realisation of Rs.6,056 per square feet.

During the quarter, the company generated net positive operational cash flow of Rs. 85.2 crore after meeting interest and tax expenses. It also reduced its cost of borrowing from 12.14% to 11.26%. But these factors were completely ignored by the market as realty companies per se are currently in a ear grip post the demonetization drive.

Sobha is currently the top loser on the BSE, hitting a new 52-week low at Rs.224.05.