- 12 Oct 2022
- ICICIdirect Research
Sobha reports stable sales volumeSOBHA - 453 Change: -66.70 (-12.85 %)
Sales volumes remained steady at 1,336,828 sq ft (down 0.9% YoY). Among major cities, Bangalore continued to contribute majorly (77.6%) to total sales volume followed by Kerala (9.6%), Gurugram (5.3%), Gift city (2.3%) and Chennai (2.2%). The sales value at Rs 1,164 crore was up 13% YoY during Q2FY23 mainly backed by improvement in average price realisation (increased to Rs 8,709 /sq ft, up 14.0% YoY). Also, the company has launched three new residential projects towards the end of the quarter - two in Bengaluru and one in Thiruvananthapuram with a total saleable area of 880,893 sq ft.
We highlight that usually Q2 is seasonally weak but overall demand seems to be steady despite higher interest rates. Further, cash flow management remains their focus area and has resulted in further net debt reduction (amount not quantified).