Sobha’s FY22 sales bookings up 23% to Rs 3,870 cr on better housing demand
Bengaluru-based realty firm Sobha Ltd’s sales bookings rose by 23 per cent to its all-time high of Rs 3,870.2 crore during the 2021-22 financial year on higher volumes driven mainly by low-interest rates on home loans.
According to a quarterly operational update, the company’s sales bookings in volume terms increased by 22 per cent to 49,09,567 square feet during the last fiscal from 40,13,581 square feet in the 2020-21 fiscal year.
In terms of value, Sobha’s sales bookings grew to Rs 3870.2 crore from Rs 3,137.2 crore. The average price realisation improved to Rs 7,883 per square feet from Rs 7,817 per square feet.
“During FY’22, we have achieved best-ever sales volume and sale value. This is achieved despite operational hurdles at the start of the quarter due to Omicron wave,” the company said.
During the last fiscal, Bengaluru, Pune, Gurugram, and GIFT City regions have shown high growth in terms of sales value and volume.
The company’s cash flows remained strong resulting in net debt reduction as compared to FY-21, Sobha said. “We have improved the price realisation from past few quarters, which would act as margin protection against recent cost increase,” it added.
In terms of volume, the company sold 33,53,250 square feet in Bengaluru during the last fiscal as against 27,02,120 square feet in the previous year. Sales volume in Gurugram rose to 6,82,755 square feet from 3,73,058 square feet during the period under review.
“The growth in housing sector is building on consistent demand prevalent from the past eighteen months, reducing the unsold inventory as well,” Sobha highlighted.
Sobha attributed the reasons for this growth to high customer confidence supported by a strong job market in an improving economy, low home loan rates, savings during the COVID pandemic period and desire to own bigger-better homes.
Recently, Macrotech Developers, which markets its properties under ‘Lodha’ brand, reported a 51 per cent growth in its sales booking to a record Rs 9,024 crore in the last fiscal.
Sales of most of the listed real estate developers are expected to rise during the last fiscal year. Those companies that have a better track record of executing projects on time are performing better.
Housing sales fell significantly in 2020 because of the COVID-19 pandemic and a nationwide lockdown, but demand bounced back in 2021 calendar year. The trend has continued in the first quarter of the current calendar year.
According to real estate consultant Anarock, housing sales across seven cities increased 71 per cent in January-March to 99,550 units.
PropTiger reported that sales increased 7 per cent year-on-year to 70,623 units during January-March across eight major cities.
Knight Frank India said that housing sales rose 9 per cent to 78,627 units during the January-March period, the highest quarterly sales in the last four years, across eight major cities.
JLL India said sales of apartments across the seven major cities went up 83 per cent to 51,849 units in January-March 2022 from 28,352 units in the corresponding period of the previous year.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
