Sobha Ltd's Sales Dip Amid High Base Effect and Limited Supply

Sobha Ltd witnessed a 29% decline in sale bookings to Rs 1,388.6 crore in the quarter ending December, attributed to limited new supply and a high base effect. Despite this, sales rose compared to the previous quarter. The company highlights economic activity and urbanization as key demand drivers.

Sobha Ltd, a leading real estate developer, reported a 29% decrease in sale bookings to Rs 1,388.6 crore for the December quarter, citing limited new supply and a high base effect as primary reasons. In the same quarter last year, the company booked sales worth Rs 1,951.6 crore.

Despite the annual dip, sales improved from the previous quarter, reaching Rs 1,178.5 crore. For the fiscal year 2024-25 up to December, sales fell to Rs 4,440.8 crore from Rs 5,140.1 crore in the prior year. The total sales for the 2023-24 fiscal year stood at Rs 6,644.1 crore, predominantly in residential units.

Sobha Ltd's outlook remains positive, driven by India's robust economic activity and urbanization trends, which spur demand for residential spaces. Increased sales in major Indian cities reflect the demand from GCCs, though supply is expected to rise in the medium term.

(With inputs from agencies.)