India's Sobha says Q1 profit doubles on strong demand for houses

Lodha Developers

07/08/2023 13:51

BENGALURU, Aug 7 (Reuters) - Indian real estate
developer Sobha Ltd  SOBH.NS  on Monday said its June quarter
profit more-than-doubled as demand in the country stayed
resilient, with more people booking flats and houses in big
cities and towns.   
    The Bengaluru-headquartered company's consolidated net
profit rose to 120.5 million rupees ($1.46 million) for the
three months ended June 30.
    Sobha said last month it had achieved its highest ever
quarterly sales value of 14.65 billion rupees, citing a record
average price realization during the quarter which stood at
10,506 per square feet, up 24.6% on year on year basis. 
    Revenue from operations at the company rose over 60%, led by
a similar spike in its real estate segment. Sobha also has a
contractual and manufacturing segment, which posted a rise of
38%.
    Bangalore, Sobha's home market, contributed to 54% of total
sale value, the company addded.
    "Preference for larger homes is an established trend now,
due to requirement of additional office space to cater to hybrid
model of working from office and homes. This was spotted early
on and catered to by Sobha," the real estate company said.
    Rapid urbanisation and a lack of public amenities in many
places have triggered a desire for many city dwellers to upgrade
to accommodations with better amenities. Builders are also
seeing a rise in first time home purchases, contributing to 
sustained demand despite higher mortgage and loan interest
rates.
    Shares of Sobha closed 1.2% up on Monday ahead of the
results. Sobha gained 24.7% in the June-quarter, underperforming
the 34.3% gain in the broader Nifty realty index  .NIFTYREAL 
 
    
   
($1 = 82.7270 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))