Shares of real estate major Sobha Ltd plunged over 3.5% on Tuesday, October 8 after the company reported its business update for the September quarter. NSE The company posted new area sales of 0.
93 million square feet during the second quarter of the current financial year (FY25) generating sales worth ₹1,179 crore at an average price realisation of 12,674 per square feet. This compares to 1.18 million square feet and sales of ₹1,873 crore in Q1 FY25.
In a stock exchange filing, the company said its total sales value for the first half of FY25 stood at ₹3,052 crore, slightly below the ₹3,189 crore recorded in the same period last year, signalling a temporary slowdown. Following the announcement, shares of Shobha plunged as much as 3.5% to an intra-day day low of ₹1,680 on the BSE.
The company noted a rebound in economic activity, supported by strong GST collections and an upward revision in India's GDP growth forecast to 7% by the IMF. However, market analysts attribute the dip in the company's stock price to muted sales and lower new area sold, particularly in the key NCR region, where sales dropped to 40,458 square feet in the second quarter from 337,316 sft in in the first quarter. Sobha Ltd highlighted strong regional performance, especially in Kerala and Tamil Nadu.
Kerala posted its best-ever quarterly sales of 0.3 million square feet, contributing ₹338 crore to the company's revenue. Tamil Nadu also saw its sales value more than double from the previous qua.