Sobha Q3 net profit declines 47% on lower sales

Realty firm Sobha on Friday reported 47% decline in consolidated net profit at Rs 32.1 crore for the third quarter (Q3) ended December due to lower sales.

The Bengaluru-based developer had posted a profit of Rs 60.1 crore in the year-ago period.

Income from operation fell by 42% to Rs 399 crore during the third quarter(Q3) of this fiscal from Rs 684.4 crore in the corresponding period of the previous fiscal, the company said in a regulatory filing.

"The downturn in residential space continued in fiscal 2016 with no imminent trend reversal in sight. Further, due to lower revenue recognition, the financial performance for the quarter was impacted," Sobha's Vice Chairman and Managing Director J C Sharma said.

On Friday, the stock of Sobha closed down 1.83% or Rs 5.30 at Rs 285.10 on the BSE.