Sobha Stock Up 7% on Robust Q2 Earnings Performance

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Bengaluru-based real estate developer Sobha Ltd has seen robust performance in the September quarter with an increase in revenue contribution from non-Bengaluru markets. The stock rose around 7 per cent on the National Stock Exchange in Tuesday’s opening trade, hitting a new 52-week high of Rs 980.

Revenue grew 57 per cent year-on-year (y-o-y) to Rs 819 crore, with the residential segment revenue rising 96 per cent y-o-y to Rs 654 crore. However, its contractual and manufacturing segment saw revenues decline by 13 per cent y-o-y in Q2FY22. Sales volumes rose 51 per cent sequentially and annually in the September quarter to1.35 million square feet (MSF). Sales value at Rs 1,030 crore improved 49 per cent on a year-on-year (y-o-y) basis.

Although Bengaluru continues to be a key market for the company with a sales volume of 0.80msf, comprising 59 per cent of the total volume, the contribution from non-Bengaluru is growing. During the quarter, other regions contributed 41 per cent of total sales volume compared to 26 per cent during Q1FY22.

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