Sobha Limited demonstrated strong financial performance in Q2 FY25, with significant growth in both revenue and profit. The company reported a remarkable 75% increase in net profit to Rs 26.1 crore. Net revenue also rose by 24.77%, reaching Rs 965.2 crore compared to the same period last year.
Strong revenue growth in Q2
The Q2 revenue figures underscore Sobha’s effective strategies and market resilience. Total revenue grew from Rs 773.6 crore to Rs 965.2 crore, marking an impressive 24.77% year-on-year increase. This robust growth highlights the persistent demand in the real estate market and Sobha’s ability to capitalize on these opportunities.
Impressive sales achievements and regional success
In Q2 FY25, Sobha recorded total sales of Rs 1,178 crore, with an average price realization of Rs 12,674 per square foot—a 24% increase from the previous year. The company sold 0.93 million square feet across various regions, cementing its strong market presence.
Kerala’s record sales
Projects in Kerala saw record quarterly sales, amounting to 0.30 million square feet and contributing Rs 338.1 crore to total revenue. Additionally, Sobha expanded its footprint by launching 0.48 million square feet of saleable area in Bangalore, bolstering regional growth.
Leadership’s take on the performance
Jagadish Nangineni, Managing Director of Sobha Limited, stated, “Our Q2 FY25 results reflect our operational strength, driven by our team’s dedication and the sustained demand for residential real estate. Our diverse project portfolio across 11 cities has greatly contributed to this growth.”
He further noted, “With our strengthened financial position post-rights issue and our unique integrated operating model, we are ready to seize future growth opportunities. Maintaining quality and customer satisfaction is central as we expand our operations.”
New leadership appointment
Looking ahead, Sobha announced the appointment of Nisanth M N as Deputy Managing Director, effective January 1, 2025, pending member approval. This strategic appointment aligns with Sobha’s vision for growth and leadership continuity.
Market reaction and future outlook
Despite the strong Q2 results, Sobha’s shares opened at Rs 1,540 on the BSE, showing a slight decline of 0.75% on Friday. Nevertheless, the company’s positive financial results and strategic initiatives suggest a promising outlook for future quarters.