Sobha : Real Estate Operations Update for the quarter ended September 30, 2018.

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SOB H A

PASSION AT WORK

October 05 , 2018

To

Dear Sir I Madam,

S ub: Real Es tate Operation s Update for th e qu a rter ended S eptember 30, 2018

With reference to th e abov e caption ed subj ect, pl ease find e nc losed a state me nt containin g an update on th e real es tate opera ti ons of th e Comp any fo r th e qua rte r end ed Se pt ernber 30, 2018 .

We reques t you to kindl y take th e afo resa id in for mat ion on record for di sseminat ion throu gh your website.

Th ankin g You .

Yours sincerely,

VIGHNESHWAR G BHAT

COMPANY S EC RETARY A NO COMPLI A NCE OFFI CE R

SOBHA LIMITED

REGO & CORPORATE OrFICE. ·sOBHA". SARJAPUR - MARATHAHALLI OUTER RING ROAD. BEl.LANDUR POST. BANGALORE - 560103, INDIA

CIN L45201KAl995PLCOl8475 I TEL. 191-80-49320000 I FAX. +9180 493204441www.sobha.com

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SOB HA

l'A~SION Al 'HOH

SOBHA LIMITED

REAL ESTATE OPERATIONAL UPDATE - Q2 FY 2018-19

The real estate sector in India has entered into a consolidation phase, as the impact of various regulatory reforms such as RERA, GST, Insolvency and Bankruptcy Code, IND AS 115, REITs regulation, etc. start settling in . This will result in a healthy ecosystem infused with greater transparency, accountability and customer assurance. Sobha believes that the projected growth of USD 650 billion by 2025 and USD 850 billion by 2028 in the sector can be made possible in such an environment only. However, delay in getting statutory approvals is still an area which needs to be addressed.

Government has encouraged development of Affordable housing by various schemes for the end-users. On the demand side, commercial real estate in cities where we operate has witnessed good traction in the recent times, thanks to the increase in demand from the shared-space community. This augurs well to push uptake in residential demand in coming years. It is also expected that, organized players like SOBHA should be the beneficiary of these structural changes. The recent developments on the interest rates, crude oil prices, depreciation of Rupee etc., may have some short term impact in the economy as well as our sector. On the positive side, the retail home buyer will continue to enjoy the retail liquidity from financial institutions as they become the key stakeholders in such an environment.

In this background, we are pleased to present our operational performance for second quarter. The Company during the second quarter achieved new sales volume of 1,031,602 square feet total valued at Rs 7,408 million with an average realisation of Rs 7,181 per square feet (Sobha Share of sales value at Rs 6,166 million with an average realisation of Rs 5,977 per square feet). Sales volume is up by 7% as compared to preceding quarter & up by 19% YoY .Sales volume achieved during the second quarter is the highest in the past 5 years. During the quarter we have launched Sobha Lake Garden residential project in Bangalore with saleable area of 888,943 square feet. In the second half of the FY 18- 19, we are poised to launch one affordable housing project each in North Bangalore and GIFT City (Gujrat) respectively and normal Sobha products launches are also planned in Bangalore, Thrissur, Pune, Cochin, which should further improve our operational performance.

It is heartening to note that we continue to perform well in our principal market i.e. Bengaluru . Sales volume achieved in Gurugram during the second quarter is the highest in past 23 quarters. It is also

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S O B H A

worthwhile to note that we have achieved this sales volume during the second quarter despite the fact that Kerala locations sales were impacted during the quarter by excessive rainfall /flood. This impact is likely to continue for atleast one more quarter.

The summarized real estate performance for the quarter ended September 30, 2018 is given below:

New Sales:

In Square Feet

{l SquareMetre = 10. 764Square Feet)

Sales Value:

Sales value (Sobha Share) up by 4% and 6% as compared to Q2- 18 and Y-o-Y respectively.

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SOB HA

i'A.HION Al WOR<

Price Realisation:

Price realisation has come down QoQ & YoY due to impact of product mix in sales.

Despite a cha llenging macro en vironment, we are confident of maintaining sa les momentum in forth coming quarters.

Investor Contact Details:

Disclaimer: The information in this update contains certain forward-looking statements. These include statements regarding outlook on future development schedules, business plans and expectations of capital expenditure. These statements are based on current expectations that involve a .number of risks and uncertainties which could cause actual results to differ from those anticipated by the Company.