Shares of real estate developer Sobha dropped 6 percent on January 8 after the company reported weak quarterly sales for the October-December period. The company's On a sequential basis however, sales value was up nearly 18 percent, supported by a new sales area of 1.01 million square feet.
In Q3 FY25, Bengaluru contributed Rs 1,001 crore, making up 72.1 percent of total sales, boosted by the launch of Sobha Ayana. Gurgaon also recorded an improved performance, accounting for 10.3 percent of sales, while Pune gained momentum as confidence grew with the nearing completion of Sobha Nesara.
At 1.04 pm, shares of Sobha were trading at Rs 1,422.80 on the NSE.
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On the other hand, the average price realisation improved by 16.5 percent year-on-year Rs 13,663 per square foot. In the first nine months of FY25, the company sold 3.12 million square feet of new sales area worth Rs 4,441 crore, with an average realisation of Rs 14,226 per square foot, reflecting a 31.3 percent year-on-year growth that was driven by price hikes in ongoing projects and higher realisations from new launches.
For the first nine months of FY25, the Tamil Nadu region saw a 79.4 percent growth in sales value driven by new launches and strong project progress. Meanwhile, Kerala and Hyderabad regions maintained steady performance, supported by existing inventory in these regions.
The management also remained bullish over the company's medium-term demand prospects. It highlighted that major cities across India recorded the highest office space absorption in 2024, aided by demand from Global Capability Centers (GCCs). "The commercial space offtake is a proxy to job creation, leading to continued growth in urbanisation. This being the fundamental driver to residential demand in major cities, sustenance of the demand seems to be intact. However, supply is also expected to increase in the medium term," the company said in an exchange filing.
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