SOBHA Q1 PAT rises 27% YoY

10 Aug 2022 , 12:41 PM

Profit before tax in Q1 FY23 stood at Rs 21.60 crore, up by 71.4% from Rs 21.60 crore in Q1 FY22. Total expenses rose 11.9% year on year to Rs 573.6 crore while cost of raw materials and components consumed jumped 75.9% year on year to Rs 65.6 crore in the quarter ended 30 June 2022. In the first quarter, the company recorded a quarterly sales value of Rs 1,145.5 crore with a sales volume of 1.36 million square feet, as demand across product segments continued to be dominated by Bengalur. The company said that close monitoring of operations has helped improve and generate Rs 272 crore of free cash with continued debt reduction by 10% QoQ, making the debt equity ratio lower to 0.84. Cashflow from real estate business improved 50% YoY to Rs 187 crore in Q1 FY23. Net debt reduced to Rs 2110 crore from Rs 2337 crore in the previous quarter. SOBHA said that despite of challenges arising out of the repo rate increase, higher input costs, the company recorded its highest ever quarterly sales since inception. The company was able to pass cost increases arising out of rise in input costs to customers, who continued to invest in the luxury segment and larger homes. The company also launched close to 2 million square feet of projects that will help sustain its sales momentum. In total the companys launch pipeline is at a healthy approximately 12 million square feet. Jagadish Nangineni, managing director, SOBHA, said, ?Our focus on operational excellence has resulted in superior cashflows resulting in lower debt, a reduction of Rs 940 crore in the last seven quarters. Our contract & manufacturing verticals have seen improved performance with increased construction activity. Our integrated design to delivery backward integration model continues to fuel our excellence and enhance competitiveness. Technology improvements, along with people training will further optimize our operations in a process driven environment, while being more nimble footed to meet changing market needs.? SOBHA is primarily focused on residential and contractual projects. Its residential projects include presidential apartments, villas, row houses, super luxury & luxury apartments, plotted developments and aspirational homes. The scrip fell 0.90% to currently trade at Rs 672.95 on the BSE. Powered by Capital Market – Live News