Sobha is the stock on radar as their pre-sales value is at the highest level in the last 12 quarters. They have also registered the highest ever sales performance both in terms of volume and value.

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In an interview to CNBC-TV18, JC Sharma, VC & MD of Sobha spoke about the latest happenings n the company and gave his outlook for the future.

Sharma said that we expect Bengaluru market to continue to do well.

“Gurgaon and Cochin should also contribute to our overall sales in a much significant manner,” he added.

Below is the verbatim transcript of the interview:

Q: You ended FY18 on a very strong note. If you could give us a sense how FY19 will be in terms of volumes, in terms of value growth. What is the pre sales that you are targeting?

A: As far as FY19 is concerned we continue to believe that we should keep growing on a double digit basis both as far as values are concerned and volumes are concerned. We also feel that our core market Bengaluru will continue to do well and other markets namely Gurgaon and Cochin should also contribute to our overall sales in a much significant manner. We also feel that prima facie now the market sentiments are turning bullish, more and more customers should be coming and buying homes with prices still reasonable and interest cost and Pradhan Mantri Awas Yojana (PMAY) benefits available. So prima facie net-net when we are entering into new financial year 18-19, it should be relatively a better year for the sector as well as for the company.

Q: What is going right for Bengaluru market because that perhaps is not the trend in other markets?

A: We have been always reiterating and communicating that this is the most stable market, price sensitive, good quality product at the right price, availability of the stocks where the jobs are getting created and right sizing, right pricing, the quality of the developers plus the kind of an edge Bengaluru has in the services sector, the space absorption of grade ‘A’ buildings, all such things has created kind of sustainable demand for Bengaluru which should continue for next one more decade.

Q: Knight Frank the consultancy, they are not optimistic at all on the future of the Bengaluru market this year. They in fact say the demand from Information technology (IT) and IT enabled services (ITeS) is going to start tapering off. If we see pricing, the price trend for Sobha also has, while volumes are looking great, the price trend last two-three quarters has come down. What you will say to some of these concerns?

A: They have their own data and I am not here to context their observation. I am talking about the real data, the real fact which we are showing. Neither the prices have come down nor the sales in the higher category period or medium or the lower category products; the volume has come down and unfortunately we do not have in some of the locations even the inventory to sell. So we are banking on newer product launches to ensure that this kind of sales momentum continue. I can also vouch that the IT sector today is in a far better condition than the market realizes. We need not have to unduly worry as far as the IT sector is concerned or the residential demand is concerned in Bengaluru.

First Published:Apr 6, 2018 10:49 AM IST