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Bengaluru-based real estate firm Sobha Ltd. reported its best ever sales quarter in both volume and value terms. In one of the better performances in recent years, cities outside Bengaluru have contributed to 40 percent of the overall sales volume.

Total sales volume for the quarter increased 12 percent from last year to 1.47 million square feet. Sales value for the quarter increased 36 percent year-on-year to Rs 1,424.7 crore, out of which, Sobha's share stands at 78 percent or Rs 1,111.2 crore.

Average price realisation for the quarter stood at Rs 9,650 per square feet from Rs 7,920 per square feet from the same period last year.

For the nine months of the current financial year, total sales volume has grown 17 percent from last year to 4.17 million square feet.

However, sales from Bengaluru, which still contributes a majority to the overall sales volume, declined 7 percent to 8.9 lakh square feet from 9.6 lakh square feet last year. That was offset by an 84 percent growth in sales in NCR, which rose to 3.5 lakh square feet. Gurugram also achieved its highest ever quarterly sale, aided by the launch of new towers.

Requirement for larger homes has been a consistent theme over the last two years, according to Sobha. Catering to this demand across cities has helped the company's volume and higher realisations.

The company also said that demand for housing continues to remain steady despite the uncertainty in the technology sector outlook and higher home loan rates.

Sobha is now present in 11 cities and its operations in contractual and manufacturing have also witnessed increased demand from corporate and institutional clients. Strong cash flows during the quarter have enabled the company to repay some debt.

In a note on the real estate sector on December 28, Morgan Stanley said that the property up-cycle is now well entrenched and listed developers appear well prepared with deep new launch pipelines and execution capabilities. Among its overweight stocks from the sector, Morgan Stanley listed DLF, Prestige Estates, and Sobha.

Shares of Sobha are trading 2.5 percent higher at Rs 581.50.

First Published:Jan 6, 2023 10:30 AM IST