Sobha stock surges on robust quarterly sales, record high realisations
Sobha Ltd surged 3.5% on the National Stock Exchange (NSE) in early trading on Friday, buoyed by its stellar operational update for the first quarter of financial year 2024 (Q1FY24). The Bengaluru-focused company clocked its best-ever pre-sales in value-terms at Rs1,465 crore, up 28% year-on-year. However, the rise was marginal on a sequential basis. This performance was supported by the highest-ever price realization for the company at Rs10,506 per square foot on a total saleable area of 1,394,117 square feet.
The realisation marked a 24.6% y-o-y surge, and a 6.1% uptick from the previous quarter. Bangalore accounted for 54% of the total sales value, largely driven by improved price realization and a strategic shift in product mix towards the luxury segment. Sales in the Kerala region surged significantly by 55% from the previous quarter due to the release of new inventory in Kochi's Marina One and Thrissur's SOBHA Metropolis, the company said.
Further, the National Capital Region continued to do well with an established market presence and the demand for GIFT City projects is on the rise with improved development and visibility, added the press release. While there were no new launches during Q1FY24, the company released around 0.8 million square feet (msf) of additional inventory in ongoing projects. Note that it has a robust launch pipeline of around 7-8msf for FY24.
According to a recent channel check by Antique Stock Broking Ltd, the Bengaluru market continued to remain buoyant in Q1FY24 despite the softer tech job environment. “Most of the Bengaluru-focused players continue to have a firm launch pipeline for H2FY24 which will help drive growth. However, Q1FY24 remained softer on new launches," said the Antique
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