ICICI Securities: Encouraging Q1 Show By Sobha In Tough Times 
Unfinished apartments stand in a property development area in Noida, Uttar Pradesh, India.  (Photographer: Prashanth Vishwanathan/Bloomberg)

ICICI Securities: Encouraging Q1 Show By Sobha In Tough Times 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Sobha Ltd. Q1 FY21 gross sales volumes of 0.65 million square feet (msf) worth Rs 4.9 billion were down 39% YoY and 28% QoQ in volume terms.

Although headline numbers appear weak, we believe that the numbers are encouraging considering the Covid-19 induced complete lockdown in April and May 2020 across India.

The exit run-rate for monthly sales volumes in June 2020 would be 0.30-0.35 msf which is almost 80-90% of the pre-Covid-19 monthly run rate. Sobha’s net debt remained flat QoQ adjusted for moratorium on interest payments.

We have built in FY21/22E volumes of 2.7 msf and 3.6 msf respectively, versus annual run rate of 4 msf to reflect the slowdown.

Click on the attachment to read the full report:

ICICI Securities Sobha Q1FY21 Results Update.pdf

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