Sobha Limited , a leading real estate developer, has reported its highest ever quarterly real estate sales of INR 2,078.80 crores in Q1, marking a significant milestone for the company. This achievement was primarily driven by the successful launch of Sobha Aurum in Greater Noida, which contributed INR 833.00 crores to the total sales value.

Strong Performance in Greater Noida

The Sobha Aurum project in Greater Noida, the company's first venture in the region, received an exceptional response from customers. Launched towards the end of June, the project sold approximately 80% of its inventory during the launch week, demonstrating strong demand in the National Capital Region (NCR) market.

Overall Sales and Realizations

Sobha's total sales for the quarter were supported by 1.44 million square feet sold across its operational markets. The company achieved an average realization of INR 14,395.00 per square foot, indicating robust pricing power and demand for its premium offerings.

Project Launches and Pipeline

During the quarter, Sobha launched two projects totaling 1.62 million square feet. The company maintains a strong residential pipeline of 17.67 million square feet across 17 projects in 9 cities, along with a commercial pipeline of about 0.7 million square feet across its operational cities.

Financial Performance

Despite the strong sales performance, Sobha's financial results for the quarter were impacted by delays in obtaining Occupancy Certificates (OCs) for five Bangalore projects. This prevented the recognition of INR 650.00 crores in revenue and INR 150.00 crores in Profit Before Tax (PBT).

Key financial highlights for Q1 include:

Cash Flow and Collections

Sobha reported record collections of INR 1,778.00 crores, up 15% from the same quarter in the previous fiscal year. The company maintains a strong liquidity position with INR 1,706.00 crores in cash against INR 1,019.00 crores in gross debt.

Future Outlook

Sobha has a significant pipeline of unrecognized revenue, with INR 17,245.00 crores from sold units yet to be recognized. The company plans to launch 7-8 million square feet worth approximately INR 10,000.00 crores in the remaining nine months of the fiscal year.

Management Commentary

Jagadish Nangineni, Managing Director of Sobha Limited, commented on the results: "We are pleased with our performance this quarter, especially the strong response to our Greater Noida launch. While we faced some temporary challenges with OC delays in Bangalore, our overall sales momentum remains robust. We are confident in our ability to capitalize on the growing demand for quality housing across our markets."

As Sobha Limited continues to expand its presence in key markets and maintain its sales momentum, the company appears well-positioned to capitalize on the growing demand for premium residential properties in India's major urban centers.

Sobha Ltd , a prominent real estate developer, has reported impressive financial results for the quarter, showcasing strong growth across key metrics. The company's performance highlights robust demand in the real estate sector and effective execution of its business strategies.

Financial Highlights

• Profit After Tax: Surged by 123% to ₹13.00 crore compared to the previous year
• Revenue: Increased by 35% to ₹901.00 crore
• Quarterly Sales: Reached a record ₹2,079.00 crore, up 11% year-on-year
• Total Collections: Rose by 15% to ₹1,778.00 crore

Operational Performance

• New Area Sold: Increased by 23% to 1.44 million square feet
• Average Price Realization: ₹14,395.00 per square foot

Financial Position

Sobha Ltd maintained a strong financial position, demonstrating its fiscal prudence:

• Net Debt: Negative ₹687.00 crore
• Net Debt-to-Equity Ratio: -0.15

Key Achievements

The company crossed the ₹2,000.00 crore milestone in quarterly sales for the first time, indicating strong market demand and successful project execution. This achievement is particularly noteworthy given the current economic landscape.

Expansion and Future Outlook

Managing Director Jagadish Nangineni attributed the company's strong performance to robust demand across key cities. He also highlighted the successful launch of Sobha's first project in Greater Noida, marking an important step in the company's geographical expansion strategy.

Market Response

Despite the positive results, Sobha Ltd's shares closed 1% lower at ₹1,612.65 ahead of the results announcement. This movement suggests that the market may have already priced in expectations of strong performance.

The real estate sector continues to show resilience, with Sobha Ltd's results indicating a positive trend in both sales and profitability. The company's ability to maintain a negative net debt position while achieving record sales demonstrates effective financial management and strong operational execution.