Sobha Limited shares surged as much as 5.67 per cent to hit an intraday high of Rs 235.50 on the BSE after the company on Saturday informed exchanges that despite the COVID-19 induced lockdown it clocked sales volume growth of 70 per cent in the first quarter of current financial year compared with the same period a year ago. "Despite 2 months of lockdown, disrupted demand outlook, complete washout of economic activities in the real estate sector, we are happy to announce that we were able to clock 70 per cent of sales volume during Q1-21 as compared to 04-20," Sobha Limited said in a stock exchange filing.
"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 & online/digital platforms and cost optimization has yielded in good operational performance for the company," the Bengaluru-based real estate developer said.
This was the highest ever income, sales volume and collections during financial year 2020 despite the challenges thrown by COVID-19 during last fortnight of the fourth quarter, Sobha added.
"Demand has remained consistent in all the cities where we operate in spite of uncertainties of the Pandemic. We continue to enjoy sufficient liquidity from banks/FI 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 Ql-21. This is the second consecutive quarter when our net debt has reduced," Sobha Limited said.
Sobha shares are so far this year down 41 per cent as against 2.7 per cent decline in the Sensex.
As of 11:37 am, Sobha Limited traded 4.78 per cent higher at Rs 233.50, outperforming the Sensex which was up 1.21 per cent.