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Sobha reported a sharp rise in its financial performance for the first quarter, supported by higher apartment prices and sustained demand for premium homes. The Bengaluru-based real estate developer recorded nearly four times growth in consolidated net profit, while revenue also increased significantly during the quarter. The company's performance reflects the continued resilience of India's residential real estate market, particularly in the premium segment. Stable domestic interest rates and steady homebuyer demand helped the sector maintain momentum despite global economic uncertainties and concerns over inflation linked to higher crude oil prices.
India's residential real estate market continued to witness healthy demand in the premium housing segment, helping Bengaluru-based real estate developer Sobha report a strong financial performance for the first quarter of the current financial year.
The company reported that its consolidated net profit increased nearly four times to INR 508.5 million during the quarter ended June 30, compared with INR 136.2 million recorded in the corresponding period last year. The sharp rise in profit was supported by improved apartment prices and sustained demand for premium residential projects.
Revenue from operations also registered strong growth, rising 50% year-on-year to INR 12.78 billion. At the same time, the company's total expenses increased 42.8% to INR 12.61 billion, reflecting higher business activity and project execution during the quarter.
The strong quarterly performance comes as India's residential real estate sector continues to remain resilient despite ongoing global economic uncertainties. Market analysts have noted that stable domestic interest rates have continued to support housing demand, particularly in the mid-income and premium residential segments.
The premium housing market has remained one of the key growth drivers for listed developers over the past few quarters, with established brands benefiting from stronger buyer confidence, higher ticket-size purchases and continued demand from end-users as well as investors. Several listed real estate companies have reported healthy sales and improved financial performance in recent quarters, indicating sustained momentum across major residential markets.
While concerns over inflation persist due to higher global oil prices, which influence import costs for Asia's third-largest economy, domestic housing demand has remained relatively stable. The combination of steady financing conditions and continued interest in quality residential developments has helped developers maintain growth despite external economic pressures.
Source Reuters
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