Sobha reports key positive of debt reduction; outlook mutedSOBHA - 567 Change: -9.95 (-1.72 %)
News: The sales volume stood at 1.34 mn sq ft (flat YoY) valued at Rs. 1109.6 crore (up 3.5% YoY) with sales value growth driven by realization at Rs. 8,265/ sq ft, up 3.1% YoY. On financial front, reported revenues were up 32.1% YoY at Rs. 731.3 crore, driven by strong real estate revenues recognition (up ~86% YoY at Rs. 540 crore) and PAT at Rs. 25 crore was up 39.7% YoY. Sobha has managed to reduce its net debt position by Rs. 317 crore QoQ basis and its net debt at the end of March’22 stood at Rs. 2,337 crore (net D/E: 0.93x).
Views: While debt reduction was key positive, the company shared a muted outlook guidance. It expects flattish sales volumes in FY23, while it would reassess its contractual business amid high inflation scenario.