BENGALURU (Reuters) -Indian real estate developer Sobha reported on Wednesday a more than 50% slump in third-quarter profit amid slower delivery of projects, which dented revenue.
Consolidated net profit for the Bengaluru-based company was 150.8 million rupees ($1.8 million) in the quarter ended Dec. 31, compared with 318.1 million rupees a year earlier.
The decline marked the sixth quarter of lower profit in the last nine quarters for the company.
Revenue dropped to 6.85 billion rupees, registering its first decline in five quarters, down 21% from the previous year.
Brokerage ElaraCapital attributed the decline to slower deliveries.
“Slower delivery of projects in the quarter meant lesser cash inflow from home buyers, which coupled with a high base from last year led to a lower revenue,” said Rupesh Sankhe, a research analyst at ElaraCapital.
However, as project deliveries pick up in the next quarter, revenue will likely recover, Sankhe added.
Revenue from mainstay real estate business fell 23%, while the smaller segment, contractual and manufacturing – which includes commercial and home interior projects – declined nearly 15%.
Shares of the company closed 2% higher ahead of results.
Meanwhile, rivals DLF, Godrej Properties and Brigade Enterprises posted higher profits on strong demand.
($1 = 82.9676 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Dhanya Ann Thoppil)
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