Sobha Ltd issued an encouraging operational update for the first quarter of the financial year 2020-21. Even in the midst of the lockdown in the economy, Sobha managed to clock 70% sales volume during Q1 2021 as compared to Q4 2020. This is largely on the back of online technological tools and a predominantly self-reliant business model.

For Sobha, the monthly sales volumes in June 2020 were almost 80-90% of the pre-Covid monthly sales numbers. Sobha has a major concern over keeping its debt levels in check. For the Mar-20 quarter, net profit of Sobha more than halved to Rs.50.7 crore. Total income for the Mar-20 quarter fell by almost 35% to Rs.927.6 crore.

Sobha is a predominant player in the Southern region and the Real Estate Regulation and Development Act or RERA has triggered consolidation in the sector which is favouring organized players like Sobha. While higher debt escalation remains a risk for Sobha, the outlook for sales growth is still quite robust for the company.