Sobha Limited — Important, 14-11-2024: General Updates

**1. Financial Highlights:** Total revenue for Q2 FY 2025 stood at Rs. 9.65 billion, with the real estate business contributing Rs. 7.81 billion (80.9%). The company recorded a significant 57.4% increase in unit handovers compared to the previous quarter, totaling 579 units. EBITDA was Rs. 1.08 billion (11.3% margin), with a profit before tax (PBT) of Rs. 362 million and a profit after tax (PAT) of Rs. 261 million, showing a 73.3% increase from Q2 FY 2024.

**2. Strategic Initiatives and Growth Drivers:** The successful completion of a Rs. 19.99 billion rights issue, oversubscribed by 1.39 times, reflects strong investor confidence. Proceeds are being utilized for project expenses, repayment of borrowings, and acquisitions, further solidifying the company’s financial standing.

**3. Business Developments:** Sobha has launched several high-value projects across regions, with total sales in H1 FY 2025 reaching Rs. 30.52 billion from 1,026 homes sold. The average realization improved by 32.7% compared to FY 2024 due to successful luxury project launches.

**4. Market Position and Competitive Advantage:** Sobha continues to maintain a robust market presence in the real estate sector, with an extensive land bank and diversified project portfolio across various states in India, enabling it to withstand market fluctuations.

**5. Investor Implications:** The company exhibits a positive outlook with enhanced cash flow metrics and reduced net debt post-rights issue. Sustained sales performance and effective project execution may lead to further growth opportunities, highlighting Sobha as a key player in the residential real estate landscape.