Sobha Q1 Results Review - Inline Bookings; Pipeline Provides Healthy Visibility: Motilal Oswal

Motilal Oswal Report

Sobha Ltd. reported bookings of Rs 19 billion (6% below estimate) in Q1 FY25 up 28%/ 25% YoY/QoQ. The performance was driven by the newly-launched premium project - ‘Sobha Aranya’ – in Gurugram.

Overall, Sobha launched four new projects with a total area of 3 million square feet.

Total volume for the quarter stood at 1.2 msf down 15%/12% YoY/QoQ. However, aided by higher sales in Gurugram, the realizations improved 51%/41% YoY/QoQ to Rs 15,900/sft.

Gurugram contributed 45% (the highest ever) to the quarterly sales value with Rs 8.5 billion, surpassing Bangalore for the first time in a quarter.

In line with its strategy to accelerate monetization of the existing pipeline, Sobha has consistently scaled up its launches since Q3 FY24, which led to a 9 msf inventory at the ongoing projects (versus 3.4 msf in Q2 FY24). The overall pipeline (incl. inventory) stood at 28 msf in Q1 FY25 (versus 24 msf in Q4 FY24), thus providing healthy growth visibility.

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