Lockdown impact: Sobha’s Q1 sales bookings down 37 pc at Rs 488 cr

The company said that the real estate sector would have to reinvent itself to understand, comprehend, plan and incorporate new innovative ways to meet the emerging new requirements.

Realty firm Sobha Ltd’s sales bookings fell 37 per cent during April-June quarter to Rs 487.7 crore due to the nationwide lockdown to control the COVID-19 pandemic. Its sales bookings stood at Rs 777.7 crore in the year-ago period. In the previous quarter, bookings were down 30 per cent from Rs 694.5 crore.

“During the quarter, we have achieved sales volume of 6,50,400 square feet valued at Rs 4.88 billion (Rs 488 crore) with a total average realisation of Rs 7,498 per square feet,” Sobha Ltd said in an operational update for the first quarter of 2020-21 fiscal year.

The price realisation has remained stable, it added. “Bengaluru is amongst the least impacted metros from COVID-19 so far and has contributed 74 per cent of sales volume during Q1-21 along with other regions also contributing meaningfully,” Sobha said.

During the entire 2019-20 fiscal year, Sobha achieved a sales bookings of Rs 2,880.6 crore. “Despite two months of lockdown, disrupted demand outlook, complete washout of economic activities in the real estate sector, we are happy to announce that we were able to clock 70 per cent of sales volume during Q1-21 as compared to Q4-20,” it said.

The company said it was able to achieve this through online technological tools, self-reliant business model, customer trust and unmatched delivery track record.

“India’s real estate sector has been hit hard by the COVID-19 pandemic. Work on projects had to be stopped suddenly due to nationwide lockdown which came into effect from March 25, 2020. “In recent weeks, the measures have eased allowing some construction activities to resume in parts of the country. But demand for both residential and commercial property in India remains tentative and as a result new launches during the quarter remain muted,” Sobha said.

The company said that the real estate sector would have to reinvent itself to understand, comprehend, plan and incorporate new innovative ways to meet the emerging new requirements.

Sobha has reported a 5 per cent decline in its consolidated net profit at Rs 281.5 crore for the last fiscal as against Rs 297.1 crore in the financial year 2018-19.

Total income, however, rose to Rs 3,825.7 crore in 2019-20 from Rs 3,515.6 crore in the preceding fiscal. Sobha has presence in 27 cities across 14 states in real estate development and contractual businesses.