Shares of real estate developer – Sobha Ltd. – rose as much as 9 per cent to hit an intraday high of Rs 535 after it reported quarterly performance update for first quarter of current financial year. Sobha achieved total sales volume of 895,539 square feet of super built-up area valued at Rs 683 crore in Aril-June period, the Bengaluru-based firm said in a stock exchange filing.
The company’s sales value advanced 40 per cent from Rs 488 crore in the same period last year.
“Residential real estate sector has been showing encouraging signs of structural revival in the recent past with better preparedness and having already adapted to digital tools. The impact of the second wave was sudden, severe, prolonged, and visible in major metro cities, also in cities where Sabha operates and in rural areas. With our innate resilience we were able to not only withstand the pressures of the pandemic but were also able to maintain the momentum gained post the impact of the first wave of the pandemic,” Sobha said in a stock exchange filing.
Sales volume in its key market of Bengaluru rose by 37 per cent annually despite stringent impact of Covid second wave during the quarter. During the quarter, Gurugram, Kochi, Thrissur, Pune and GIFT CITY did quite well as compared to Ql-21 despite impact of COVID second wave, Sobha said.
“We believe, with the increased vaccination drive and effective lockdowns, the second wave has been contained. Economic activities have started opening, and it is expected that normalcy will return in the second half of FY-2021-22. However, we cannot completely rule out uncertainties and likely impact caused by second wave of the pandemic,” Sobha added.
As of 12:52 pm, Sobha shares traded 4.3 per cent higher at Rs 512, outperforming the Sensex which was trading on a flat note.