08 Oct , 2024 By : Debdeep Gupta
Shares of Sobha slumped more than 3 percent on October 8 after the company reported a muted business update for the September quarter.
The realty major posted new area sales of 0.93 million square feet during Q2 generating sales worth Rs 1,179 crore at an average price realization of 12,674 per square foot, compared to 1.18 million square feet and sales of Rs 1,873 crore in Q1FY25.
Sobha's total sales value for the first half of FY25 stood at Rs 3,052 crore, slightly below the Rs 3,189 crore recorded in the same period last year, signaling a temporary slowdown.
The company, however, shared that it witnessed a rebound in economic activity, supported by strong GST collections and an upward revision in India's GDP growth forecast to 7 percent by the IMF.
Muted sales and lower new area sold, particularly in the key National Capital Region (NCR), where sales dropped to 40,458 square feet in the second quarter from 337,316 ft in the first quarter, hampered the sentiment today.
However, the company highlighted strong regional performance, especially in Kerala and Tamil Nadu. Kerala posted its best-ever quarterly sales of 3 lakh square feet, contributing Rs 338 crore to the company's revenue. Tamil Nadu also saw its sales value more than double from the previous quarter, supported by new project launches.
As markets recovered to trade higher, shares of Sobha rebounded to trade marginally in the red. At 11:49 am, Sobha Shares were down half a percent at around Rs 1,737 on the National Stock Exchange (NSE).
The stock has risen around 74 percent so far this year, outperforming benchmark Nifty's returns of 15 percent. In the past 12 months, the counter has rallied 150 percent, more than doubling investors' capital. In comparison, Nifty gained around 28 percent during this period.
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