SOBHA Historic Quarterly Sales Performance & Continued Debt Reduction
SOBHA delivered yet another consecutive solid quarter with a 52% increase in quarterly sales YoY, marked by historic high sales numbers with strong operational performance that resulted in sales of Rs.11.45 billion and a sales volume of 1.36 mn.sft. (up 67.7% YoY), thanks to demand across product segments, which continued to be dominated by Bengaluru. Despite challenges arising out of the repo rate increases, higher input costs, the company recorded its highest ever quarterly sales since inception. The company was able to pass cost increases arising out of the rise in input costs to customers, who continued to invest in the luxury segment and larger homes. The company also launched close to 2 million sft. of projects that will help sustain its sales momentum. In total the company’s launch pipeline is at a healthy ~12 mn. sft. Close monitoring of operations has helped improve and generate Rs. 2.72 billion of free cash with continued debt reduction by 10% QOQ, making the debt equity ratio lower to 0.84. Cash flow from the real estate business improved 50% YOY to Rs. 1.87 billion. Total Income of the company stood at Rs. 4.80 billion with Real Estate Revenues contributing Rs. 3.67 billion while the Contractual & Manufacturing segment generated revenues of Rs. 1.08 billion. Jagadish Nangineni, Managing Director, SOBHA Limited observes, “We have had consecutive four remarkable sales quarters in an inflationary environment boosted by demand from discerning customers who desire the best quality homes. This showcases strong customer confidence, improved affordability and increased aspiration for high quality homes in integrated communities. Sobha has always, consistently focused on delivering exceptionally executed products, and in time. Our future launches will continue to see traction as the demand for the luxury segment and larger houses takes front seat. Our focus on operational excellence has resulted in superior cash flows resulting in lower debt, a reduction of Rs. 940 crore in the last seven quarters. Our contract manufacturing verticals have seen improved performance with increased construction activity. Our integrated ‘design to delivery’ backward integration model continues to fuel our excellence and enhance competitiveness. Technology improvements, along with people training will further optimize our operations in a process driven environment, while being more nimble footed to meet changing market needs.” SOBHA Ltd. continues its focus on relevant product offering, best-in-class construction quality and timebound execution. As always, the company endeavors to delight home buyers and exceed their expectations, which has earned SOBHA Ltd. the recognition and reputation of delivering best quality homes in the market. To boost operational efficiency and agility, the company is enhancing its focus on digitizing its processes. The company’s self-reliant ‘Backward integration’ model continues to help deliver products on time and quality, while enhancing its execution capabilities and ability to address future growth opportunities. SOBHA’s superior execution capability is its core strength. The company currently has ongoing real estate projects aggregating to 32.51 million square feet of developable area across 10 cities and ongoing contractual projects aggregating to 3.09 million square feet under various stages of construction across 6 cities. As on 31st March 2022, the company has delivered about 120.08 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 and contractual in 26 cities. Overall, SOBHA has a footprint in 27 cities across 14 states across India.
Tags : SOBHA Historic Quarterly Sales Performance Bengaluru Projects Real Estate Revenues Jagadish Nangineni Managing Director