Realty stock Sobha vaulted to a near 10-year high on Monday, buoyed by an announcent from the company that its sales volume and value grew sharply in the quarter ended December 2017.
Sobha Limited announced that it sold 9,33,365 sq.ft area during the third quarter ended December 2017, up 52% from 6,13,652 sq.ft in the corresponding quarter of financial year 2016-17.
Total sales value in the December 2017 quarter increased as much as 92% to Rs 750.9 crore.
In terms of value and average realisation, Sobha's performance in the October - December 2017 quarter was the company's highest-ever in any quarter till date.
Sobha attributed the increase in sales volume to lower home loan rates and said that it expects to sustain this improvement in operational performance in the coming quarters too.
The company expects the real estate sector to consolidate and witness revival in both demand and supply.
In the third quarter, average price realisation increased to Rs 8045 per sq ft., up 26% from Rs 6369 per sq ft. In
The filing from Sobha shows that sales bookings increase not just in Bangalore, but in Kochi, Thrissur, Coimbatore, Gurgaon and Mysore as well.
In the nine months ended December 2017, Sobha's sales bookings increased by 41%, compared to the corresponding period of the previous year. In volume terms, sales bookings increased to 26.09 lakh sq ft during nine month period of this fiscal from 22.78 lakh sq ft in the same period last fiscal, a jump of 14.5%, the company said.
The share price of Sobha Limited soared to Rs 694.90 on the National Stock Exchange in early trades this morning, gaing nearly 15% in the process. The stock is currently up 5.3% at Rs 637.40. The Sobha Limited counter has clocked a volume of 1.75 million shares so far in the session.
On BSE, nearly 2.65 lakh shares have changed hands so far at the Sobha counter today, almost nine times the average daily volume of about 30,000 shares.