Q1 2025 Sobha Ltd Earnings Call Transcript
Key Points
- Sobha Ltd (BOM:532784) launched four new projects in Q1 FY25, totaling 3.04 million square feet, enhancing their project portfolio.
- The company achieved its second-highest ever sales value in Q1 FY25, with a total sales of INR 1,874 crores, marking a year-on-year growth of 28% and a quarter-on-quarter growth of 24.6%.
- Sobha Ltd (BOM:532784) raised INR 2,000 crores through a successful rights issue, which will support future growth and expansion.
- The company has a strong residential launch pipeline of 17.9 million square feet across 16 projects in seven cities, providing a robust outlook for the next six to eight quarters.
- Sobha Ltd (BOM:532784) achieved the highest ever quarterly inflows and collections, amounting to INR 1,546 crores, indicating strong financial performance and cash flow management.
- The company has 9.24 million square feet of unsold inventory, which may impact future sales velocity, especially for high-ticket size units.
- Revenue recognition was affected by delays in obtaining policies, which may cause a lag in revenue recognition for the remainder of the financial year.
- The EBITDA margin for Q1 FY25 was relatively low at 12.7%, partly due to increased sales and marketing expenses.
- The company is de-emphasizing civil contract projects to focus on real estate, which may impact revenue from contract projects.
- There are concerns about the high cost of land acquisition in new markets like Mumbai and Noida, which could affect the company's financial returns and project viability.
Ladies and gentlemen, good day, and welcome to Sobha Limited Q1 FY25 business conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Adhidev Chattopadhyay. Thank you, and over to you, sir.
Yes, good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone to the Q1 FY25 Results Call of Sobha Limited. As always, we are referenced here from the management by Mr. Jagadish Nangineni, the Managing Director; and Mr. Yogesh Bansal, the Chief Financial Officer.
I'd now like to hand over the call to the management for their opening remarks. Over to you. Thank you.
Thank you, Adhidev, and the ICICI Securities team for organizing this call. Good evening, everyone. Thank you for joining us for the Q1 FY25 earnings call. This quarter has been quite
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