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PASSI ON A l W OR K
January 08, 2016 To,
The Deputy Manager
Department of Corporate Services, BSE Limited
Floor 25, P.J Towers,
Dalal Street, Mumbai -400 001
Scrip Code: 532784The Manager
National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra East, Mumbai -400 051
Scrip Code: SOBHADear Sir I Madam,
With reference to the above captioned subject , please find enclosed a statement containing an update on the real estate operations of the Company for the quaiier ended December 31, 2015.
We request you to kindly take the aforesaid information on record for dissemination through your website.
Thanking you. Yours sincerely,
SOBHA LIMITED (formerly SOBHA DEVELOPERS LTD.)
REGD & CORPORATE OFFICE :'SOBHA',SARJAPUR .MARATHAHALU OUTER RING ROAD (ORR). DEVARABISANAHALLI.BELLANDUR POST BANGALORf: .560 103. INDIA CIN:Lt520 1KAl99SPLCOl 8475 J TEL :+9 1-80-49320000 IFAX : +9180 •19320444 J www .sobha.com
SOBHA LIMITED
(Formerly Sobha Developers Limited)
REAL ESTATE OPERATIONAL UPDATE - Q3 FY 2015-16
Season's Greetings and best wishes to all our esteemed stakeholders for a happy and prosperous 2016.
As per recent research reports, theIndian economy, growing at 7.5% per annum, has emerged as the fastest growing economy in the world and is projected to sustain this momentum in the year 2016. However, for the real estate sector, the struggle in the residential space has continued undiminished. The demand in the first nine months of the fiscal has been more subdued as compared to the previous year, with even the festive season in the third quarter, not providing the anticipated impetus for sales.
In this backdrop, we present the performance of the real estate operations of the Company for the quarter ended December 31, 2015.
In Q3'16, the Company achieved new sales of 806,309 square feet valued at 4,783 million with an average realisation of 5,932 per square feet. The new sales volume and value are higher by 22% and 12% as compared to Q3'15. The Bangalore market continues to perform strongly for the Company with steady contribution from Sobha Dream Acres Project. The Company has seen traction in the Thrissur market whereas the performance in the Chennai market was marginally affected by the recent floods. The launch of Group Housing Project in NCR-Gurgaon has been deferred to the current quarter on account of unforeseen approval delays. As a result, there were no project launches during Q3'16 and the new sales achieved is entirely attributable to the ongoing projects of the Company.
We are pleased to inform that our first commercial project, Sobha City Mall, in Thrissur, Kerala became operational during the third quarter of the fiscal. Situated in the midst of Sobha City - the first and the largest integrated township in the State, the mall will offer best-in-class retail and entertainment experience to the people of Kerala.
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It has a total developable area of 448,653 square feet with a total saleable area of 323,265 square feet. Out of the total saleable area, we had earlier sold 64,553 square feet and the leasable area
available to the Company is 258,712 square feet.
The summarised real estate performance for the quarter ended December 31,2015 is given as under:
New Sales:
In Square Feet
Location | Q3 16 | Q3 15 | Q2 16 | 9M 16 | 9M 15 | FY 15 |
Bangalore | 616,742 | 525,369 | 605,985 | 1,923,210 | 1,614,423 | 2,441,493 |
NCR | 9,786 | 9,464 | 11,941 | 28,833 | 54,106 | 80,540 |
Chennai | 93,143 | 27,124 | 115,816 | 275, 116 | 111,847 | 197,965 |
Thrissur | 39,774 | 12,765 | 19,757 | 62,749 | 105,757 | 121,847 |
Pune | 12,617 | 23,588 | 17,365 | 51,887 | 83,490 | 108,300 |
Coimbatore | 4,884 | 5,904 | 10,659 | 18,152 | 42,813 | 52,630 |
Cochin | 6,114 | 17,807 | 25,810 | 37,463 | 91,497 | 101,077 |
Calicut | 19,453 | 14,781 | 36,896 | 82,018 | 74,848 | 87,377 |
Mysore | 3,796 | 24,650 | 6,100 | 18,608 | 71,440 | 87,774 |
TOTAL | 806,309 | 661,452 | 850,329 | 2,498,036 | 2,250,221 | 3,279,003 |
1Square Metre = 10.764 Square Feet)
The Company's performance in the first nine months has been 11 % higher than 9M'15.
Sales Value:
Particulars | Q3 16 | Q3 15 | Q2 16 | 9M 16 | 9M 15 | FY 15 |
Total Sales value ( | 5,137 | 4,631 | 5,332 | 22,257 | ||
15,787 | 15,776 | |||||
Sales Value -Sabha Share ( Million) | 4,783 | 4,270 | 4,950 | 14,771 | 14,682 | 20,950 |
Price Realisation:
Particulars Q3 16 Q3 15 Q2 16 9M 16 9M 15 FY 15
Average Price Realisation -
Total (I Square Feet) 6,371 7,002 6,270 6,320 7,011 6,788
Price Realisation - Sabha Share 5,932 6,456 5,822 5.9..1.3.... 6,525 6,389 (I Square Feet) /.,. I;,._
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The Company had set a guidance of new sales area of 4 Million square Feet valued at t 26 Billion for the current fiscal. At the close of 3 quarters of FY'16, the Company has registered new sales area of
2.50 Million Square Feet valued at t 14.77 Billion. n the context of the current operating scenario, we expect a consequential impact on the Company's performance vis-a-vis the guidance set for the financial year 2015-16.
We believe that as the macro environment continues to improve and its effect eventually percolates to the real estate sector, the Company's performance will begin to reflect a corresponding growth as well. Further, we maintain an optimistic outlook on the long-term prospects of the sector.
Investor Contact Details:
Subhash Mohan Bhat Chief Financial Officer Mobile: +91 99801 99088
Email: subhash.bhat@sobha.com
K. Bala Murugan
Senior Manager Investor Relations Mobile: +91 98807 30459
Email: balamurugan.k@sobha.com
Disclaimer: The information in this update contains certain forward-looking statements. These include statements regarding outlook on future development schedules, business plans and expectations of capital expenditure. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated by the Company.
Sobha Limited issued this content on 2016-01-08 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-08 13:12:02 UTC
Original Document: http://www.sobha.com/pdfs/Sobha_Limited_Real_Estate_Operations_Update_31_12_2015.pdf