Sobha Ltd's share price rallied seven percent to Rs 439.7 apiece in early trade on Thursday after the real estate company reported its highest-ever quarterly sales volume during October-December 2020 period.

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In a regulatory filing, the real estate developer said that its total sales volume in Q3FY21 rose to 11.3 lakh sq ft from 10.7 lakh sq ft in the same period of the previous fiscal. Sales volume in the quarter ended September 2020 was at 8.91 lakh sq ft.

The company’s total sales value during the quarter increased to Rs 887.6 crore from Rs 726.1 crore, YoY. Sobha’s shares in the sales value were Rs 677.7 crore.

Total Average Price Realisation rose to Rs 7,830 per sq ft in the December quarter as compared to Rs 7,737 per sq ft in the September quarter. It was Rs 6,811per sq ft in Q3FY20.

Sales volume, total sales value, Sobha’s share of the sale value and price realization are up by 6 percent, 22 percent, 12 percent and 15 percent respectively as compared to Q3FY20, the company said.

“Healthy sales numbers are encouraging despite the fallout of Covid19 pandemic situation and related stress across industries. Demand situation is also backed by once in a lifetime low-interest rates, stamp duty reduction in some states, various payment and other schemes offered by the developers,” Sobha Ltd said.

Sales volume achieved during Q3FY21 is the best ever quarterly sales volume reported by the company without any major launch during the quarter.

“Bengaluru has returned to normalcy and has contributed 69% of the total sales volume along with a meaningful contribution from other regions especially Gurugram, Kerala and Pune. We are currently witnessing good sales momentum across all other regions along with Bengaluru,” it said.

There is low unsold stock in Chennai, Coimbatore and Mysore regions and hence sales performance of these regions needs to be viewed in line with that, it added.

“With new launches planned across various cities in the next few quarters and the inherent demand for housing continuing, our sales performance during H2-21 is expected to be better than H2-20. With our continuous focus on cash flow management, we were able to manage our net debt levels, finance cost and other costs during the quarter,” the company said.

At 9:55 am, the shares of Sobha Ltd were trading 4.81 percent higher at Rs 430.65 apiece on the BSE as compared to a 0.53 percent gains in the benchmark Sensex.

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(Edited by : Ajay Vaishnav)