Sobha Ltd has announced its financial results for the fourth quarter ended March 31, 2024, revealing a significant year-on-year decline in profitability but maintaining its commitment to shareholder returns with a ₹3 per share dividend.
Key Highlights:
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Net Profit Plunges: Q4 consolidated net profit dropped by 85.55% to ₹7.02 crore compared to ₹48.57 crore in the same period last year, reflecting challenging market conditions and lower income.
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Revenue Falls Sharply: Consolidated total income for the quarter stood at ₹791.25 crore, down 36.2% from ₹1,240.14 crore a year ago.
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Dividend Declared: The board has recommended a dividend of ₹3 per equity share for the financial year ended March 31, 2024, underlining the company’s focus on rewarding shareholders despite the tough quarter.
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Operational Metrics: For FY24, Sobha achieved an annual sales value of ₹6,644 crore, with collections at ₹5,790 crore and new area sales of 6.08 million sq ft. The average price realization stood at ₹10,922 per sq ft.
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Debt Position: Net debt was reduced to ₹1,262 crore, and the debt/equity ratio improved to 0.50, reflecting ongoing efforts to strengthen the balance sheet.
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Strategic Moves: The company acquired the remaining 51% stake in C.V.S Tech Park, making it a wholly-owned subsidiary, and appointed Vikram Kumar as Executive Vice President - Legal and Land Purchase.
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Rights Issue Approved: Earlier in the year, the board approved a rights issue of up to ₹2,000 crore to eligible shareholders, aimed at supporting future growth initiatives.
Despite a challenging quarter, Sobha’s continued focus on operational efficiency, prudent debt management, and shareholder returns positions the company for resilience in the evolving real estate market.
Source: ET Realty