Q1 2027 Sobha Ltd Earnings Call Transcript
Key Points
- Sobha Ltd (BOM:532784) achieved its highest quarterly real estate sales in Q1 FY27, with a sales value of INR3,656 crore, marking a 76% increase year-on-year.
- The company sold 2.34 million square feet across 1,432 homes, demonstrating strong demand for its product portfolio.
- Bangalore emerged as the strongest market, contributing 57% of quarterly sales, driven by successful launches of Sobha OneWorld and Sacred Grove.
- The NCR region also delivered its highest ever quarterly sales, with a sale value of INR1,384 crore, reaffirming the company's strategy of expanding in high-growth micro-markets.
- Sobha Ltd (BOM:532784) maintains a strong balance sheet with a net cash position of INR69 crore and a low borrowing cost of 7.62%.
- Collections were relatively modest considering the pre-sales, attributed to sales occurring towards the end of the quarter and some milestone billing delays.
- The company experienced a net cash outflow of INR149 crore during the quarter, primarily due to planned investments in land and future development opportunities.
- Despite a strong sales performance, the profit after tax was INR50.7 crore, which, although improved from the previous year, may not fully reflect the sales growth.
- There was a 60% hike in minimum wages in Karnataka, which could impact overall project costs, although the company believes it can absorb this within its budget.
- The company has a significant amount of unsold inventory, totaling 14.94 million square feet, which could pose a challenge if market conditions change.
Ladies and gentlemen, good day and welcome to Sobha Limited Q1 FY27 earnings conference call, hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I would now like to hand over the call to Mr. from ICICI Securities. Thank you, and over to you, sir.
Yeah, good evening, everyone. Thank you for joining us on the Sobha Limited Q1 FY27 results call today. As always, from the Management, we have with us, Mr. Jagadish Nangineni, the Managing Director; and Mr. Yogesh Bansal, the Chief Financial Officer.
I would now like to hand over the call to the Management for their opening remarks. Over to you. Thank you.
Thank you, Adhidev. Good evening, everyone, and thank you for joining us on this Q1 FY27 earnings call. I thank all the investors, analysts, and stakeholders for taking time to be with us today.
Our operational update
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
