COVID-19 Impac: Sobha’s Q4 residential sales volume down 20%

BENGALURU: Real estate firm Sobha‘s fourth quarter sales volumes was 20% lower on year on year basis due to the outbreak of COVID-19. For the full year sales volume was up by mere 1%, mentioned a report.

“Were it not for the COVID-19 hit Mar’20, Sobha’s volumes could have been 1m+ sq.ft for a fifth straight quarter. Nevertheless, Q4 volumes were still good to help it slightly better its previous full year best, ” said a recent report by Anand Rathi, a brokerage firm.

Among the sizeable markets, Kochi, with 71% y-o-y decline, contributed 5.6% to the 20% y-o-y lower overall volumes, whereas Bengaluru, with 22% lower volumes, followed with 5.2%.

“Management sees its liquidity situation and cashflow from ongoing projects good to cover outflows even in a hypothetical situation of no new bookings for six months. Beyond six months, though, it would need to re-caliberate strategy, ” the report mentioned.

With the COVID-19 situation still fluid, cash-flow management takes centre stage. “Management sees the present liquidity situation sufficing to weather the current tough time, and inherent demand keeps it optimistic regarding times ahead, ” it said