Sobha Limited - Real Estate Operations Update for Q2 FY2022-23

India, with its GDP growth of 13.5% in the first quarter and expected growth of 7.0% in the entire financial year 2022-23, is regarded as the fastest growing major economies of the world. Steadiness of our economy is being witnessed in the form of consistent GST collections of over 1.4 lakh crore for past seven consecutive months and significant growth in direct tax collections in this FY. Strong consumer confidence is also being witnessed, including in home buying, in an inflationary and yet stable domestic economic environment. However, persistent high inflation and RBI's interest rate increases to combat the same, is a matter of concern going forward, even though the rates remain lower than the pre-covid period as of now.

Adoption of hybrid work model in the technology & services sectors, higher household income, corresponding improved affordability and increased aspirations are leading to sustained housing demand across cities, including Bangalore, where we have achieved sales of over one million square feet consecutively for the second quarter. We are also pleased to inform that we have made our foray into Thiruvananthapuram, capital city of Kerala, with the launch of our first residential Real Estate project, Sobha Meadows - Whispering Hill. It is Sobha's eleventh city of residential real estate operations in India and fourth city in Kerala.

We have achieved the highest ever sales value in this quarter, with a steady sales volume and have improved on the previous best of average price realization. Cash flow management continues to be our focus area and has resulted in further net debt reduction.

Key Operational Highlights of Q2-FY23

- Achieved highest ever quarterly sales value of Rs. 11.64 billion, 13.0% increase from Q2-FY 2022

- Sobha's share of sales value is highest ever at Rs. 9.61 billion, increased by 12.5% from Q2-FY 2022

- Average Price realization improved to Rs. 8,709 /sft, increased by 14.0% from Q2-FY 2022

New launches in Q2-FY23

We have launched 3 new residential projects towards the end of this quarter - two in Bangalore, one in Thiruvananthapuram with a total saleable area of 880,893 sft.

- SOBHA Insignia - It is a boutique super-luxury project in Bhoganahalli, South East Bangalore, with 33 apartments and a saleable area of 80,251 sft.

- SOBHA Meadows - Whispering Hill - Luxury apartment project with a saleable area of 196,420 sft in Thiruvananthapuram, Kerala - designed on theme of living close to nature.

- Sobha Brooklyn Towers - Town Park - Launched 297 apartments of 3 & 4 BR configuration in three new towers, with a saleable area of 604,222 sft near Electronic City, Hosur Road, Bangalore.

Source : Equity Bulls

Keywords

Sobha RealEstateOperations Update Q2FY2023