Sobha Limited informed the exchanges Saturday that the real estate company posted its highest ever income, sales volume and collections during FY20 despite challenges thrown by Covid-19 during last fortnight of the fourth quarter.
India’s real estate sector has been hit hard by the Covid-19 pandemic. Work on projects had to be stopped suddenly due to nationwide lockdown which came into effect from March 25, 2020. In recent weeks, the measures have eased allowing some construction activities to resume in parts of the country.
But demand for both residential and commercial property in India remains tentative and as a result new launches during the quarter remain muted. The real estate sector will have to reinvent itself to understand, comprehend, plan and incorporate new innovative ways to meet the emerging new requirements.
Despite two months of lockdown, disrupted demand outlook, complete washout of economic activities in the real estate sector, the company announced that they were able to clock 70% of sales volume during Q1FY21 as compared to Q4FY20.
The company achieved a sales volume of 650,400 square feet valued at Rs4.88 billion, with a total average realization of Rs7,498 per square feet. The price realization has also remained stable.
Bengaluru is amongst the least impacted metros from Covid-19 so far and has contributed 74% of sales volume during Q1FY21 along with other regions also contributing meaningfully.
Sobha Limited stock is currently selling at Rs234.95 up Rs12.10 or 5.43% than the previous closing of Rs222.85 on the BSE.
“We were able to achieve this through online technological tools, our Self-reliant business model, customer trust on SOBHA brand and unmatched delivery track record. Continuous improvement in our processes, adaptable approach in business, use of technology and Online, digital platforms and cost optimization has yielded in good operational performance for the company,” company said.
Demand has remained consistent in all the cities where the company operates inspite of uncertainties of the Pandemic.
“We continue to enjoy sufficient liquidity from banks/Fl to meet our obligations. With our continuous focus on efficient cash flow management, we were able to reduce our net debt and average interest cost of borrowing during Q1FY21. This is the second consecutive quarter when our net debt has reduced,” company said.
With more and more companies opting for work from home, inherent demand for better quality homes, low interest rates and other benefits extended by government, demand is likely to sustain in the coming quarters and organized players are expected to perform better. The level of inquiries from customers are now almost back to pre-Covid levels.
