Sobha Developers' Q1 sales bookings up 26% at Rs 602 cr

Sobha Developers' sales bookings rose by 26 percent to Rs 602.8 crore in the April-June quarter of this fiscal, as the company sold more area at a higher price despite overall slowdown in housing demand.

The company had sold properties worth Rs 479.4 crore in the same quarter of last fiscal, Bangalore-based company said in its operational update.

In volume-terms, Sobha Developers sold 10 percent more area in the first quarter of 2013-14 fiscal at 9.2 lakh sq ft against 8.35 lakh sq ft in the year-ago period.

The average price realisation was higher by 14 percent at Rs 6,548 per sq ft against Rs 5,737 per sq ft during the period under review.

"The real estate operation of the company during the first quarter of the financial year 2013-14 performed credibly especially in Bangalore, Chennai and Trichur. Notwithstanding a slowing economy and sliding rupee, there was sustained momentum in sales," Sobha said.

The company noted that its launch of a mixed development project in Bangalore was successful, allaying concern of slowdown in that market.

Sobha said that its sales bookings in the NCR market dipped in the first quarter. It expects the market to recover on account of "positive dynamics in employment and demographics".

The company has projects in Pune, Coimbatore and Mysore.

During the full 2012-13 fiscal, the company sold 37.55 lakh sq ft for Rs 2,215 crore.

At the start of this fiscal, Sobha had given a guidance for its operations.

"Targeted new sales value for FY 13-14 - Rs 2,600 crore.

Targeted new sales volume for FY 13-14 - 4.2 million sq ft, expected price realisation for FY 13-14 - Rs 6,200/sq ft," Sobha had said.

The company expressed confidence about achieving the guidance set for 2013-14 fiscal even though it said that the overall economic climate continues to be challenging.