Sobha Ltd Reports 29% Drop in Q3 Sale Bookings to Rs 1,389 Crore
Real estate developer Sobha Ltd experienced a 29% decline in sale bookings to Rs 1,388.6 crore in the quarter ended December, primarily due to reduced new supply and a high base effect.
Real EstateSobha LtdSale BookingsProperty SalesIndian Real Estate MarketReal EstateJan 08, 2025
The company's sale bookings fell to Rs 1,388.6 crore from Rs 1,951.6 crore in the same period last year.
This decline is primarily attributed to lesser new supply and a high base effect from the previous year.
However, there was a silver lining as the sale bookings showed a significant increase from the previous quarter, rising from Rs 1,178.5 crore.
The company's regulatory filings highlighted this sequential growth, which is a positive indicator of market recovery and demand.
For the April-December period of the 2024-25 fiscal year, Sobha Ltd's sale bookings declined to Rs 4,440.8 crore from Rs 5,140.1 crore in the corresponding period of the previous fiscal year.
Despite this, the company's performance in the residential sector remained robust, accounting for a significant portion of its sales.
In the third quarter of fiscal year 2025 (Q3-FY25), Sobha recorded a sales value of Rs 13.88 billion (1,388 crore) with a new sales area of 1.01 million (10 lakh) square feet at an average price realization of Rs 13,663 per square foot.
This represents a 17.8% growth compared to the previous quarter.
For the first nine months of FY25, the company sold 3.12 million (31.2 lakh) square feet of new sales area, generating a value of Rs 4,441 crore.
The average realization improved by 31.3% over the same period last year, reaching Rs 14,226 per square foot.
This improvement is primarily due to price increases in ongoing projects and higher realizations from new project launches.
Sobha commented on the overall economic activity in Q3 FY25, noting a steady rise in GST collections and increased new hirings across various sectors.
The company also highlighted that major cities across India saw the highest office space absorption in 2024, driven by demand from Global Capability Centers (GCCs).
The commercial space offtake is seen as a proxy for job creation, which in turn fuels urbanization and residential demand in major cities.
While the demand for residential properties remains strong, Sobha anticipates an increase in supply in the medium term.
Sobha Ltd has a strong presence in several Indian markets, including Bengaluru, Delhi-NCR, Kerala, Tamil Nadu, Hyderabad, Pune, and Ahmedabad.
The company continues to focus on delivering high-quality residential and commercial projects to meet the growing demand in these regions.
Frequently Asked Questions
What is the main reason for the decline in Sobha Ltd's sale bookings in Q3 FY25?
The main reason for the decline in Sobha Ltd's sale bookings in Q3 FY25 is a reduction in new supply and a high base effect from the previous year.
How much did Sobha Ltd's sale bookings increase sequentially in Q3 FY25?
Sobha Ltd's sale bookings increased from Rs 1,178.5 crore in the previous quarter to Rs 1,388.6 crore in Q3 FY25, representing a sequential growth of 17.8%.
What was Sobha Ltd's total sale bookings for the first nine months of FY25?
For the first nine months of FY25, Sobha Ltd recorded sale bookings of Rs 4,441 crore, selling 3.12 million square feet of new sales area.
How did the average price realization change for Sobha Ltd in Q3 FY25 compared to the same period last year?
The average price realization improved by 31.3% over the same period last year, reaching Rs 14,226 per square foot in Q3 FY25.
In which cities does Sobha Ltd have a significant presence?
Sobha Ltd has a significant presence in several Indian cities, including Bengaluru, Delhi-NCR, Kerala, Tamil Nadu, Hyderabad, Pune, and Ahmedabad.
Related News Articles
Massive Blast at Chemical Factory in Thane District Leaves 10 Dead
A massive explosion at a chemical factory in Dombivli
Smartworks Leases Massive 6 Lakh Sq Ft Office Space in Pune for Rs 4.48 Cr per Month
Smartworks leases 6 lakh sq ft office space in Pune for Rs 4.48 cr per month, with a starting rent of Rs 73 per sq ft per month and a 4.77 percent escalation built in every annum.
Realty Stock Surges After Board Nod for ₹6,000 Crore QIP Raising
The shares of a major real estate development company surged 1.4% following the board's approval to raise Rs. 6,000 Crore through a Qualified Institutional Placement (QIP).
JRS Stock Reaches 52-Week High at $9.38, Fueling Real Estate Investment Growth
The Nuveen Real Estate Income Fund (JRS) has surged to a 52-week high, marking a significant milestone in the real estate investment landscape. InvestingPro Insights highlights the fund's robust performance and its potential for further growth.
Gen Z's Investment Choices: Stocks, Mutual Funds, and Gold
Gen Z is taking the investment world by storm, venturing into stocks, mutual funds, and gold. This new generation is redefining financial planning and investment strategies.
NIFTY Realty Index Soars 38% in 2024: Top Performing Sectors and Key Players
The strong performance of the real estate market and consolidation among large players have provided essential stability to the sector. Government initiatives and growing investor confidence have further bolstered the industry.