Realty firm Sobha announced Q1FY23 Result : Highest ever quarterly sales value and volume with highest average sale price of Rs. 8,431 per sft Generated Rs. 2.27 billion free cash flow and corresponding debt reduction Net debt reduced to Rs. 21.10 billion from Rs. 23.37 in previous quarter; Net Debt to Equity now 0.84 Disciplined growth strategy continues to improve operational performance across the organisation Healthy launch pipeline to capitalize significant future demand SOBHA delivered yet another consecutive solid quarter with a 52% increase in quartery sales YoY, marked by historic high sales numbers with strong operational performance that resulted in a sales of Rs.11.45 billion and a sales volume of 1.36 mn sft (up 67.7% YoY), thanks to demand across product segments, which continued to be dominated by Bengalur. Close monitoring of operations has helped improve and generate Rs. 2.72 billion of free cash with continued debt reduction by 10% QoQ, making the debt equity ratio lower to 0.84. Cashflow from real estate business improved 50% YoY to Rs. 1.87 billion. Total Income of the company stood at Rs. 4.80 billion with Real Estate Revenues contributing Rs. 3.67 billion while the Contractual & Manufacturing segment generated revenues of Rs. 1.08 billion. Mr. Jagadish Nangineni, Managing Director, SOBHA Limited observes, “We have had consecutive four remarkable sales quarters in an inflationary environment boosted by demand from discerning customers who desire the best quality homes. This showcases strong customer confidence, improved affordability and increased aspiration for high quality homes in integrated communities. Sobha has always, consistently focused on delivering exceptionally executed products, and in time. Our future launches will continue to see traction as the demand for the luxury segment and larger houses takes front seat. Our focus on operational excellence has resulted in superior cashflows resulting in lower debt, a reduction of Rs. 940 crore in the last seven quarters. Our contract & manufacturing verticals have seen improved performance with increased construction activity. Our integrated ‘design to delivery’ backward integration model continues to fuel our excellence and enhance competitiveness. Technology improvements, along with people training will further optimize our operations in a process driven environment, while being more nimble footed to meet changing market needs.” Result PDF