India`s Sobha Ltd Q3 profit nearly halves as land purchase costs surge
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India's real estate developer Sobha Ltd on Tuesday reported that its third-quarter profit nearly halved, hit by higher land acquisition costs.
The Bengaluru-based company's consolidated net profit fell nearly 48% to 318 million rupees ($3.84 million) for the three months ended Dec. 31.
The company's total expenses surged 51.7% to 8.63 billion rupees, mainly as land purchase costs rose to 5.32 billion rupees from 232 million rupees a year ago.
Sobha's real estate liabilities also increased by nearly 27% to 65.45 billion in the quarter.
In contrast, peers DLF reported a near 37% rise in third-quarter profit, while Macrotech Developers' profit gained 41.4%.
However, Sobha's quarterly consolidated revenue from operations rose 39.51% to 8.68 billion rupees, helped by strong demand for new homes.
Ahead of the quarterly results, shares of Sobha closed 1.5% higher at 577.50 rupees.
($1 = 82.7200 Indian rupees)
