Sobha Limited Q3 net profit at INR 21 crore

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EBITDA and PAT for Q3-21 stands at Rs.1.38 billion and Rs.0.21 billion respectively, same is up by 8% and 24% respectively compared to Q2-21.

Sobha Limited achieved quarterly sales volume of 1.13 million square feet of Super Built up Area valued at Rs 8.88 billion, with an average price realization of Rs.7,830 per square feet during Q3-21. Sales volume, total sales value and Sobha share of sales value during Q3-21 were up by 27%, 29%, 28% respectively as compared to Q2-21. It is also worth noting that sales volume, total sales value and Sobha share of sales value during Q3-21 were up by 6% ,22%, 12% respectively as compared to Q3-20, an indication that worst is over and we are surpassing pre-Covid level of operational performance. During 9M-21, Sobha achieved sales volume of 2.68 million square feet of Super Built up Area valued at Rs 20.65 billion, with an average price realization of Rs.7,718 per square feet of Super Built up Area.

Total Price Realization of Rs 7,830 per square feet achieved during Q3-21 is the highest price realization achieved during past 6 quarters. During the quarter, Sobha launched ‘Sobha City – Athena’ project in Bengaluru, an extension of the existing Sobha City project, with residential super built-up area of 121,606 square feet and super built-up area of 28,863 square feet commercial space.

Sobha was able to achieve “positive net cashflows” of Rs 0.75 billion during the quarter and also Rs 1.04 billion for the combined period of 9M-21. Our Total cash inflow, Real Estate cash inflow and contractual cash inflows have increased by 26%, 32%, & 10% Q-o-Q respectively. The average interest cost continues to come down and currently stands at 9.17% as on 31st December 2020.

On the Financial front, the company has reported a total income of Rs. 6.96 billion during Q3-21 which is up by 27% as compared to Q2-21. EBITDA and PAT for Q3-21 stands at Rs.1.38 billion and Rs.0.21 billion respectively, same is up by 8% and 24% respectively compared to Q2-21.

J.C. Sharma, Vice Chairman and Managing Director, SOBHA Limited said “We are happy to announce that we have achieved our best ever presales performance during the quarter. Highest ever presales volume has been achieved followed by higher price realization 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.

Real estate cash inflow and net cash flow achieved during Q3-21 is the highest in the last 10 quarters. We have also achieved highest ever net operating cashflow of Rs 4.04 billion on 9 months rolling basis, during the last 3 years.

Cashflow management and optimum utilization of available resources at disposal remains a key area of focus for us. This is backed by our net positive cashflows during Q3-21 and 9M-21 which stands out from the rest. Labour and material sourcing has returned to normalcy post pandemic linked hold-ups. Execution of projects is moving with steady pace. While we meet the execution requirements, it is vital that we also focus on our collections and keep a tab on collections in line with execution timelines. Despite pandemic induced challenges, it is worth noting that we were able to bring down debt during the quarter. We also believe that the pandemic related hurdles are over and we are on the right track to recovery.”