Net Profit Falls 22%, Misses Estimates

Bengaluru-based Sobha Ltd.’s net profit fell 22% for the second quarter of fiscal 2024, missing analysts’ estimates.

The real estate player’s net profit declined to Rs 15 crore as compared with Rs 19 crore year-on-year. Analysts polled at Bloomberg expected a profit of Rs 24.6 crore for the July-September period.

The company’s revenue rose to Rs 741 crore, as against Rs 906 crore consensus estimate of analysts tracked by Bloomberg.

Sobha Q2 Highlights (Consolidated, YoY)

  • Net profit down 22% at Rs 15 crore vs Rs 19 crore.

  • Revenue up 10% to Rs 741 crore vs Rs 670 crore.

  • Ebitda down 20% to Rs 75 crore vs Rs 95 crore.

  • Ebitda margin at 10% vs 14%.

Revenue of the real estate segment rose 21% to Rs 543 crore, while the contractual and manufacturing segment revenue declined by 11% to Rs 235 crore.

Shares of Sobha closed more than 2% higher at Rs 787 apiece on the BSE on Monday, as compared with a 0.9% rise in the benchmark Sensex. The realty stock is up over 34% year-to-date.

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