Real estate major Sobha Ltd has reported robust sales during the April-June quarter of fiscal 2021 despite the pandemic-induced nationwide lockdown. The company's sales were largely driven by the Bengaluru market.
The company reported Q1FY21 sales volume at 650,400 lakh square feet valued at Rs 488 crore, with a total average realisation of Rs 7,498 per square feet.
JC Sharma, Vice Chairman & MD, Sobha told CNBC-TV18 said that June was normal in terms of sales and almost equal to pre-COVID levels with inquiries that started improving during the month.
While the Bengaluru market continues to do well with 70-75 percent sales coming from it, the company saw issues w.r.t site visits for prospective buyers.
"The demand in the residential market not as bad as perceived. We are confident that the company will do better in the next 9 months," Sharma said.
Further, the Kerala market did relatively better in Q1FY21 and Sharma expects it to continue to do well.
NRIs buying homes has emerged as a new trend, he added.
Meanwhile, the company has reduced debt by Rs 70 crore in the last quarter, with payments coming in.
"The company was also able to reduce our net debt and average interest cost of borrowing during Q1FY21. This was the second consecutive quarter when the company’s net debt had reduced," he said.