Sobha shines 10% today on strong operational performance in Q2 FY21, Management reinforces confidence among investors

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. Sales volume and total sales value during Q2 of FY21 were up by 37% and 41% respectively as compared to Q1 of FY21.

Management reinforces confidence in investors and gives strong forward looking guidance

Management believes that amidst uncertain real estate sectoral outlook, due to strong brand equity, delivery track record and world class product offerings in other operating cities especially Gurugram, Kochi, Thrissur and Chennai, they have achieved encouraging sales performance during the quarter which shows customer's strong belief in their brand in other regions as well apart from Bengaluru.

Additionally, they said the price realization of Rs 7,737/square feet achieved during Q2-21 is the highest price realization achieved by the company as compared to past 5 quarters. They are also pleased to inform that they have achieved higher sales value in Q2-21 as compared to Q2-20.

Furthermore, management will continue to perform well in Bengaluru but dependency on Bengaluru sales volume has reduced from 74% during Q1 of FY21 to 60% during Q2 of FY21. Company continues to enjoy sufficient liquidity from banks/Foreign investors to meet their obligations. They remain focused on cash flow management and cost optimization which has helped them to manage their cash flows efficiently during the quarter. Management will continue to bring down our average cost of borrowing and as a result, the cost of borrowing as of 30th Sep 2020 came down meaningfully. As informed during Q1 FY21 operational update, enquiry levels are almost at the pre-Covid levels, which will help us to perform better in the second half of the FY 20-21.

Authored by Rahul Kamdar