Sobha reports healthy sales booking; debt reduction continuesSOBHA - 706 Change: 30.10 (4.46 %)
News: Sales volume remained healthy at 1.48 mn sq ft (up 10.1% YoY). The sales value at Rs 1463 crore was up 32% YoY during Q4FY23 with average price realisation (increasing to Rs 9868/sq ft, up 19.8% YoY) mainly due to project mix. The company has delivered 15.1% volume growth in FY23 vs. its guidance of 10-15% volume growth in FY23. Sales value growth was 34% at Rs 5198 crore in FY23. On financial front, revenues grew 70% YoY to Rs 1210 crore and PAT at Rs 48.6 crore, up 2.4x YoY.
Views: Overall demand seems to be steady despite higher interest rates. The company has guided for strong launch pipeline of ~7 mn sq feet in FY24 vs. ~4 mn sq feet in FY23. Further, cash flow management remains its focus area and resulted in a further net debt reduction (by Rs 129 crore in Q4 and Rs 697 crore in FY23).