Realty player Sobha Ltd said second quarter profits declined 34.8 per cent to Rs 38.8 crore as sales of new apartments reduced in a slowing real estate market. Revenue declined 32.8 per cent for the quarter.
Sobha’s June quarter operational performance was disappointing, with new sales up five per cent over a year to Rs 504 crore and volumes up 11 per cent to 0.84 million square feet. On a sequential basis, this revenue number was down 20 per cent.
Shares of Sobha has dipped 6% to Rs 385 on the BSE after reporting a 12% decline in year-on-year (yoy) consolidated net profit at Rs 61.50 crore for the quarter ended March 2015 (Q4), due to poor sales.
Sobha Limited, the Bengaluru-based property developer, will be offering a returnee internship programme in association with JobsForHer, a connecting portal for women looking to return to work after a break.
Shares of real estate companies were trading higher on the bourses on media reports that the Union government cleared amendments to the Real Estate (Regulation and Development) Bill, 2013, paving the way for legislation on regulators for the sector.
The December quarter has been a disappointing one for realty player Sobha, recording its weakest sales for a quarter in three years. It reported new sales of 0.66 million sq ft, down 11 per cent over a year, and 21 per cent on a sequential basis.
Doha Bank has successfully signed a corporate finance deal worth 500 million dirhams ($136 million) with Dubai's Sobha Group, with a syndicated facility of 800 million dirhams for the Sobha Hartland project.
Shares of real estate companies gained ground on Monday after the market regulator, the Securities and Exchange Board of India (Sebi), approved the setting up and listing of Real Estate and Infrastructure Investment Trusts, commonly referred to as REITs.