Sobha’s dependence on Bengaluru realty market down to 60%

Real estate developer Sobha Ltd continued to perform well in Bengaluru, but dependency on city sales volume has reduced from 74 per cent during the first quarter of FY21 to 60 percent during second quarter.

The company achieved total sales volume of 891,700 square feet valued at ₹690 crore with a total average realisation of ₹7,737 per square feet during Q2. “During Q2 FY21, we have achieved this despite lockdown being imposed in Bengaluru in the month of July, no new launch during the quarter, uncertain macro-economic outlook and tough real estate sector scenario. Sales volume, total sales value and Sobha share of sales value during Q2 were up by 37 per cent, 41 per cent, 35 per cent respectively as compared to Ql,” the company said in a regulatory filing to exchanges.

Amidst uncertain real estate sectoral outlook, due to company’s strong brand equity, delivery track record and world class product offerings in other operating cities especially Gurugram, Kochi, Thrissur and Chennai, “The company has achieved encouraging sales performance during the quarter which shows customer's strong belief in Sobha brand in other regions as well apart from Bengaluru,” company said.

It further said “We are happy that price realisation of ₹7,737 per square feet achieved during Q2 is the highest price realisation achieved by the company as compared to past five quarters. We have achieved higher sales value in Q2 FY21 as compared to Q2 FY20.”

Cash flow

On the cash flow, the company said: “We continue to enjoy sufficient liquidity from banks/Fl to meet our obligations. We remain focused on cash flow management and cost optimization which has helped us to manage our cash flows efficiently during the quarter.”

“We continue to bring down our average cost of borrowing and as a result, the cost of borrowing as of September 30, 2020 came down meaningfully. As informed during Ql operational update, enquiry levels are almost at the pre-Covid levels, which will help us to perform better in the second half of the FY21,” the company said.