On August 8, Sobha Ltd, a real estate firm, reported a significant decline in its financial performance for the first quarter ending June 30, 2024. The company's net profit fell by 49.2% year-on-year, dropping to Rs.6.1 crore from Rs.12 crore in the same period the previous year.
Additionally, revenue from operations decreased by 29.5%, totaling Rs.640.3 crore compared to Rs.907.9 crore in the corresponding quarter of the previous fiscal year. The decline in both profit and revenue highlights challenges faced by the company in maintaining its financial performance.
In the first quarter of this fiscal year, EBITDA at the operational level decreased by 14.7% to Rs.55.7 crore compared to Rs.65.3 crore in the same period of the previous fiscal year.
In the reporting quarter, the EBITDA margin was 8.7%, up from 7.2% in the same period of the previous fiscal year. EBITDA stands for earnings before interest, tax, depreciation, and amortisation.
Sobha's overall sales value rose sequentially by 24.6%. Gurugram led with Rs.852 crore, accounting for 45.5% of the total sales and marking its highest-ever quarterly sales. Bengaluru followed, contributing 33.5% to the sales value. Kerala saw a 5.8% year-on-year increase, and GIFT City achieved its highest-ever quarterly sales, with an 81.2% growth compared to the same quarter last year.
The quarterly sales figures amounted to Rs.1,874 crore, reflecting a 28% increase compared to the previous year and a 24.6% rise from the previous quarter. Sobha achieved its highest average price to date at Rs.15,941 per square foot, marking a 51.7% year-over-year growth.
In the first quarter of FY25, the company sold 562 units, encompassing a total saleable area of 1.17 million square feet across various regions. Additionally, it introduced four new residential projects, offering a combined saleable area of 3.04 million square feet.
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