Sobha Q2 sales bookings up marginally at Rs 690 cr despite COVID-19

Realty firm Sobha has reported a marginal rise in its sales bookings at Rs 689.9 crore during the second quarter of this fiscal despite the COVID-19 pandemic, driven by rise in per sq ft price realisation.

In its operational update, the Bengaluru-based firm has informed that its sales bookings rose to Rs 689.9 crore in July-September 2020 from Rs 682.3 crore in the year-ago period

Sales bookings in volume terms declined to 8,91,700 sq ft in the second quarter of FY2020-21 from 10,36,340 sq ft in the corresponding period of the previous year.

However, price realisation increased sharply to Rs 7,737 per sq ft from Rs 6,584 per sq ft.

"The real estate industry in India is going through a remarkable phase of transition and revival. The combination of the lowest home loan rate, great offers and deals, increasing reliance on work from home model, availability of homes and never seen before pricing makes this an ideal time for home buyers," Sobha said in a regulatory filing on Monday.

The overall demand sentiment is steadily moving upwards, it added.

"During Q2 FY21, we have achieved a total sales volume of 8,91,700 square feet valued at Rs 6,900 crore, with a total average realisation of Rs 7,737 per square feet.

"This performance was achieved despite lockdown being imposed in Bengaluru in the month of July, no new launch during the quarter, uncertain macro-economic outlook and tough real estate sector scenario," Sobha said.

The enquiry levels from prospective customers are almost at the pre-COVID-19 levels, which will help it to perform better in the second half of the FY 2020-21, the company said.

Besides Bengaluru, Sobha has presence in Gurugram, Kochi, Thrissur, Chennai, Mysore, Pune, Gift City, Coimbatore and Kozhikode.

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"We continue to enjoy sufficient liquidity from banks/financial institutions to meet our obligations. We remain focused on cash flow management and cost optimisation which has helped us to manage our cash flows efficiently during the quarter," Sobha said.