Sobha Ltd’s Q2 performance disappoints D-Street; stock down 6%

Sobha Ltd shares slipped as much as 6 per cent in the Tuesday morning trading session to record the day’s low of Rs 740.75 apiece. The downtrend in the stock can be attributed to a mixed set of numbers posted by the real estate company in its July to September quarter (Q2FY24).

At around 10: 09 a.m., shares of Sobha Ltd traded 2.89 per cent or Rs 22.7 lower at Rs 764.25 apiece. The market capitalisation of the company at around the same time stood at Rs 7,248.59 crore. Sobha Ltd’s stock was the top loser on the Nifty Realty index. 

In post market hours on Monday, Sobha Ltd announced its Q2 results, showing a 21 per cent decline to Rs 19 crore in its consolidated net profit in the quarter under review from Rs 19 crore in a year-ago period. 

Earnings before interest, tax, depreciation, and amortisation (EBITDA) was down 20.6 per cent to Rs 5.19 crore for the quarter ending September year-on-year (YoY). 

The company’s margin, a key to measuring profitability, declined 398 basis points (bps) and stood at 10.15 per cent against 14.13 per cent in a year-ago period. 

On the other hand, revenue saw a positive growth of 10.6 per cent to Rs 741 crore against Rs 670 crore YoY. 

The company’s July to September quarter sales were up by 26.1 per cent to 1.69 million/sf YoY.

Average price realisation was also up by 17.4 per cent to Rs 10,223/sf (YoY)

More than 1,000 homes were sold during the quarter under review, and the quarterly sales value was up by 48.1 per cent to Rs 1724 crore YoY.

Sobha Ltd share price: Past performance 

In 2023 so far, shares of Sobha Ltd have gained over 30 per cent, a sharp rise against Nifty50’s jump of over 6 per cent.

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