Sobha stock trades 3% lower despite best-ever annual sales in FY24

Shares of real estate developer Sobha Ltd dropped as much as 3.3% on Friday, April 5, after the company released its operational business update for the quarter and year ended March 2024.

In its Q4 business updates Sobha said that it achieved its best-ever annual sales value of ₹6,644 crore in FY 2023-24, up 27.8% from ₹5,198 crore in FY 2022-23.

Sales area in FY24 grew by 7.7% to 6.08 million sqft from 5.65 million sqft in FY23. Average realisation also improved by 18.7% during the year to ₹10,922 per sqft.

Sobha added that it has launched 7.02 million sqft spread over six projects across its cities of operations in FY24 compared to 3.96 million sqft in FY23.

“We have successfully launched six residential projects, adding 7.02 mn sft to our portfolio during the financial year. We have completed sales for some of our marquee projects - SOBHA Dream Acres (Bengaluru) and SOBHA City Gurgaon (NCR), GIFT City projects through the course of the year,” the statement released by the company said.

During Q4FY24, Sobha clocked steady sales of ₹1,504 crore at an average price realisation of ₹11,230 per sqft. Bengaluru contributed 77.5% to overall sales value for the quarter.

Notably, the company had launched four new projects in the March quarter with a total saleable area of 3.18 million sqft, of which two were launched in the last week of March.

Following the announcement, shares of Sobha Ltd fell as much as 3.3% to hit an intraday low of ₹1,511.15 apiece on the National Stock Exchange (NSE) on Friday. At 1:30 pm, the stock was trading 1% lower at ₹1,543.6 apiece.

Over the past one year, Sobha shares have rallied a massive 247% compared with a 28% rise in the benchmark Nifty index during the same period.