Sobha has reported a dip of 47.87 per cent in its consolidated net profit during the quarter ended December 31, 2022. Its profit after tax (PAT) stood at Rs 31.80 crore in Q3 FY23 as against Rs 61 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s consolidated total income stood at Rs 898 crore in Q3 FY23, a growth of 38.15 per cent from Rs 650 crore it recorded in the similar quarter last year.
Jagadish Nangineni, managing director of the company said, “Our geographical diversification has paid rich dividends this quarter, helping achieve our best ever real estate sales in volume, value and price realization.”
During the quarter, one of the customers of Sabha Assets (SAPL), a wholly-owned subsidiary of the holding company, has terminated a project development contract entered by it and demanded compensation of Rs 295.60 crore in addition to forfeiture of Rs 22.70 crore performance guarantee and Rs 2.60 crore of deposits alleging that SAPL has not commenced the contract work. Toe carrying value of aforesaid project related assets/receivables as at December 31, 2022 is Rs 35.40 crore. SAPL has filed petition with the court of jurisdiction challenging the termination and its grounds and also filed a counter claim from the customer towards business loss and other receivables, it said in the regulatory filing.
During the quarter, total collections were up 32.9 per cent year-on-year at Rs 14.07 billion with real estate contributing 82.2 per cent, real estate collections increased by 38 per cent year-on-year to Rs 11.57 billion, sales volume stood at 1.48 million sq ft, up 12 per cent year-on-year, net debt reduced to Rs 17.69 billion and net debt to equity reduced to 0.72, the company said in a media release.