Shares of the Bengaluru-based real estate developer - Sobha Limited - rose as much as 10.36 per cent to hit record high of Rs 976.70 after its profit tripled in September quarter. Sobha Limited reported net profit of Rs 48.3 crore compared with Rs 16.2 crore during the same quarter last year, marking an increase of 2.98 times or 198 per cent. Its revenue from operations jumped 57 per cent to Rs 819 crore versus Rs 522 crore in the year ago period.
During the July-September period, Sobha achieved its best quarterly sales volume of 13.48 lakh square feet of super built-up area valued at Rs 1,030 crore, the company said in an investor presentation.
The company launched two residential projects -‘Sobha Manhattan' in Bengaluru and ‘Sobha Arbor' in Chennai with super built-up area of 8.75 lakh square feet and 2.89 lakh square feet, respectively.
“Work from home, low interest rates, increased affordability, financially stable developers, significant pickup in the prospects of IT sector and increase in salaries etc. will serve as primary demand drivers in the real estate sector,” Sobh said on the outlook for the company going ahead.
Sobha's operating profit also known as earnings before intrest, tax, depreciation and amortization (EBITDA) for second quarter of current financial year came in at Rs. 160 crore and operating profit margin came in at 19 per cent.
“The housing sector continues to follow its growth trajectory with healthy traction and strong demand momentum across segments and geographies. Our all-time high new sales bookings exhibited a strong performance during the quarter followed by healthy cash flows. This has enabled Sabha to continue with its stellar run in this quarter as well,” the Bengaluru-based company said in a press release.
As of 2:03 pm, Sobha shares traded 2.89 per cent higher at Rs 911, outperforming the Sensex which was down 0.3 per cent.