- 15 Nov 2022
- ICICIdirect Research
Sobha reports stable sales volume; revenue recognition remains lowSOBHA - 507 Change: 0.30 (0.06 %)
Sales volume remained steady at 1.33 mn sq ft (down 0.9% YoY). 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). On financial front, topline at Rs 667.3 crore was down 14.4% YoY, owing lower revenue recognition in the real estate segment which was down 28.5% at Rs 444 crore. The bottomline was also down 70% at Rs 19.2 crore, owing to lower revenues and profitability.
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 (down by Rs 235 crore in H1FY23). Key will guidance on volumes ahead