Sobha Limited, a leading real estate developer, has announced its financial results for the third quarter of the fiscal year 2024-25, showcasing robust revenue growth and improved profitability. Despite ongoing legal proceedings and regulatory scrutiny, the company remains confident in its business strategy and market position.
Financial Highlights
- Revenue from operations surged to ₹1,246.80 crore, marking a significant increase from ₹695.11 crore in the same quarter last year.
- Total income stood at ₹1,282.69 crore, up from ₹726.22 crore year-over-year.
- Net profit for the quarter rose to ₹27.55 crore, compared to ₹17.78 crore in Q3 FY 2023-24.
- Earnings per share (EPS) increased to ₹2.73 from ₹1.87 in the same quarter of the previous year.
The company’s contractual and manufacturing segment generated ₹239.04 crore in revenue, while its real estate division remained the dominant contributor with ₹1,060.96 crore in revenue.
Challenges and Legal Proceedings
Despite the strong financial performance, Sobha Limited continues to face regulatory and legal challenges:
- Land Attachment Under PMLA: The Enforcement Directorate (ED) has provisionally attached land parcels worth ₹201.61 crore in Haryana under the Prevention of Money Laundering Act (PMLA). The company has appealed against the order and remains confident in its legal position.
- Income Tax Investigation: The Income Tax Department conducted a search operation in March 2023, leading to tax demand orders for Assessment Years 2016-17 and 2022-23. The company has filed appeals and believes it can successfully contest the demands.
- Project Disputes: Sobha Limited is engaged in arbitration over a terminated project contract worth ₹295.61 crore and a legal dispute regarding the cancellation of a building occupancy certificate in Bengaluru.
Managing Director Jagadish Nangineni expressed optimism about the company’s future, citing strong demand in the real estate sector and ongoing project expansions. “Despite legal hurdles, our fundamentals remain strong. We are committed to delivering value to our stakeholders while ensuring compliance with all regulations,” he said.
With a paid-up equity share capital of ₹100.90 crore and strong financial backing, Sobha Limited is poised for continued growth in the coming quarters.
