Bengaluru-based real estate developer Shobha Ltd posted a strong performance in the September quarter with an increase in revenue contribution from non-Bengaluru markets. Reacting to earnings announcement, stock hit new 52-week high ₹980 intraday on NSE on Tuesday.
Revenue up 57% year-on-year (YoY) ₹819 crores, the revenue of the residential segment has increased by 96% ₹654 crores. However, its contractual and manufacturing segment saw revenue decline 13% year over year in the second quarter. Sales volume increased 51% sequentially and annually to 1.35 million square feet (MSF) in the September quarter. Selling price ₹1,030 crore, a 49% year-on-year improvement.
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Though Bengaluru remains a major market for the company with sales volume of 0.80msf comprising 59% of the total volume, contribution from non-Bengaluru regions increased to 41% of the total sales volume from 26% a year ago Is. What’s more, the net debt of the firm has declined. ₹39 crore in the September quarter, the cost of debt declined to 8.85% from 9.32% a year ago. Consequently, the key net debt/equity ratio improved marginally to 1.13 times at the end of September quarter from 1.15 times in the June quarter.
Firm’s real estate cash inflow rises 44% ₹725 crore and management expects real estate net cash flow ₹7,213 crore from ongoing and completed projects for FY22. its net operating cash flow ₹312 crore during the first half of FY22 is the highest in the last five years. Furthermore, its unsold inventory at the end of September quarter stood at 0.44msf, the lowest in the real estate sector.
In the past one year, the company’s shares have gained 226%, outperforming the S&P BSE Realty Index, which has gained 144% in the same period.
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