SOBHA Limited claims to have achieved best ever quarterly sales volume of 1.13 million square feet of Super Built up Area valued at INR 8.88 billion, with an average price realization of INR 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.
The 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 the company is surpassing pre-Covid level of operational performance. During 9M-21, SOBHA has achieved sales volume of 2.68 million square feet of Super Built up Area valued at INR 20.65 billion, with an average price realization of INR 7,718 per square feet of Super Built up Area.
Total Price Realization of INR 7,830 per square feet achieved during Q3-21 is the highest price realization achieved during past 6 quarters. During the quarter, the developer claims to have 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.
“While Bengaluru remains our core market, other operating cities like Gurugram, Kochi, Thrissur & Pune, have shown encouraging sales performance during the quarter. With new launches planned across various cities in the next few quarters and inherent demand for housing continuing, our sales performance during H2-21 is expected to be better than H2-20,” company claims in a press release.
As per SOBHA, the focus on cashflow management is continuing in the right direction. This is evident in the cashflow numbers the company witnessed during the 3rd quarter of FY-21. It was able to achieve “positive net cashflows” of INR 0.75 billion during the quarter and also INR 1.04 billion for the combined period of 9M-21. 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 INR 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 says, “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. SOBHA also achieved highest ever net operating cashflow of INR 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. This is backed by company’s net positive cashflows during Q3-21 and 9M-21 which stands out from the rest.
For SOBHA, labour and material sourcing has returned to normalcy post pandemic linked hold-ups. Execution of projects is moving with steady pace. While the company meets the execution requirements, it is vital that focus on their collections and keeping a tab on collections in line with execution timelines has been as per the company expectations. Despite pandemic induced challenges, the developer has been able to bring down debt during the quarter.
The company currently has ongoing real estate projects aggregating to 27.05 million square feet of developable area and 19.52 million square feet of saleable area, and ongoing contractual projects aggregating to 7.89 million square feet under various stages of construction.
As on 31st December 2020, the company has delivered about 111.35 million square feet of developable area. The company has a real estate presence in 10 cities, viz. Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gujarat (Gift City) and Mysore. Overall, SOBHA has footprint in 27 cities in 14 states across India.
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