Sobha brings cheer

Sobha is currently among the top five gainers on the BSE. The stock rose almost 12.5% to hit an intraday high at Rs.268.35, with a 3-times surge in volumes. Its 20% UC for the day stands at Rs.286.95.

The company yesterday posted an update on its operations in Q2FY21.

The company said that during Q2FY21, it achieved a total sales volume of 891,700 square feet valued at Rs 6.90 billion, with a total average realization of Rs. 7,737 per square feet - the highest price realization achieved by the company as compared to past 5 quarters.  During the pre-Covid time, its average quarterly sales was around 10 lakh square feet. T

his performance was achieved 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 the quarter were up 37% (YoY).  It was also good to know that its dependency on Bengaluru sales volume reduced from 74% to 60% (QoQ).

The company also said that it is working on bringing down its average cost of borrowing and as a result, cost of borrowing as of 30th Sep 2020 came down ‘meaningfully’ – it did not give a number. It added that  enquiry levels were almost at the pre-Covid levels, which will help it perform better in the second half of the FY21.