Sobha Ltd Reports Significant Decline in Net Profit for Q1 FY25

Realty firm Sobha Ltd reported a 50% drop in its consolidated net profit to Rs 6.05 crore for the June 2024 quarter, down from Rs 12.05 crore a year earlier. Total income decreased to Rs 669.85 crore. Despite the decline, strong housing demand and efficient execution led to impressive sales and real estate collections.

Realty firm Sobha Ltd on Thursday announced a 50 percent fall in its consolidated net profit, recording Rs 6.05 crore in the June 2024 quarter compared to Rs 12.05 crore in the same period last year.

The company's total income also saw a decrease, dropping to Rs 669.85 crore from Rs 939.24 crore during the April-June period of the previous fiscal year, according to a recent regulatory filing.

'The strong performance in Q1FY25 was supported by robust housing demand across all our operational markets and a steady focus on efficient execution,' said Jagadish Nangineni, Managing Director at Sobha Ltd. 'This resulted in impressive sales, exceptional real estate collections, and the highest average price realization of Rs 15,941 per sq ft. A significant portion of this price realization can be attributed to our shift in inventory mix towards luxury and super-luxury projects.'

With a healthy pipeline of 18.30 million sq ft of residential projects set to launch in upcoming quarters, Nangineni also noted that the recently concluded rights issue would bolster the company's financial and operational strength, positioning Sobha Ltd to capitalize on growth opportunities in India's vibrant economic environment and to enter new markets.

(With inputs from agencies.)