- 14 Feb 2022
- ICICIdirect Research
Sobha reports healthy performanceSOBHA - 545 Change: -11.00 (-1.98 %)
News:Sobha’s sales volume of 1.32 mn sq ft (up 17% YoY, flat QoQ) during Q3FY22 was valued at Rs.1,048 crore (up 18% YoY, flat QoQ). Further, average price realization during Q3FY22 has grown 4% QoQ. The overall sales were primarily driven by good sale numbers achieved in Bengaluru, Gurugram and Pune. On financial front, reported revenues were down 2.4% YoY at Rs.668.2 crore, with relatively lower real estate revenues recognition (down 4% YoY at Rs.447 crore). EBITDA at Rs.227.5 crore, was up 27.4% with margins of 34%, up 800 bps YoY, as base quarter had high land cost. PAT at Rs.32.7 crore was up 51% YoY. The net debt was down by 124 crore QoQ at Rs. 2654 crore, albeit net debt to equity remained at ~1.1x, higher than peers.
Views: The healthy sales volume is indicative of robust end user demand amid IT sector tailwinds. While sales volume recovery is positive, key monitorable will debt-equity of the company (at ~1.1x), which needs reduction for rerating.