Sobha Ltd, a prominent real estate company, encountered a challenging start on November 7 as its shares plummeted by 5 percent in early trade. The decline came following the company’s announcement of a 22.4 percent year-on-year drop in net profit for the July-September quarter. The net profit dwindled to Rs 14.90 crore, down from Rs 19 crore a year ago, primarily due to a substantial 14 percent surge in expenses.
The surge in expenses was mainly attributed to rising land purchase costs, overshadowing any bottomline growth the company could achieve during the quarter. Sobha Ltd’s operational performance further suffered, with the EBITDA margin contracting to 10.2 percent in July-September, a notable decrease from the 14.2 percent recorded a year ago.
At 2:43 pm, Sobha Ltd’s shares were still struggling, trading 3.72 percent lower at ₹757.05 on the National Stock Exchange, indicating the immediate market response to the company’s financial challenges.
