Results     30-May-22
Analysis
Oberoi Realty
Net down 19% on weak operating show and higher tax
 

Consolidated net  sales  of Oberoi Realty for the quarter ended Mar 2022  has increased 4.22% to Rs 823.46 crore.  Operating profit margin has declined from 47.27% to 42.72%, leading to 5.82% decline in operating profit to Rs 351.77 crore.  Employee cost increased from 2.00% to 2.27%.   Other expenses rose from 38.14% to 60.58%.   Other direct service cost rose from 32.58% to 56.51%.   Other income rose 80.54% to Rs 19.48 crore.  PBIDT fell 3.39% to Rs 371.25 crore.  Provision for interest rose 60.08% to Rs 31.6 crore.  PBDT fell 6.83% to Rs 339.65 crore.  Provision for depreciation fell 3.40% to Rs 9.67 crore.  Profit before tax down 6.93% to Rs 329.98 crore.  Share of profit/loss was 150% higher at Rs 0.8 crore.  Provision for tax was expense of Rs 98.43 crore, compared to Rs 68.01 crore.  Effective tax rate was 29.76% compared to 19.17%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 19% to Rs 232.35 crore.  
  • Sales of Real Estate segment has gone up 2.92% to Rs 800.64 crore (accounting for 97.23% of total sales).  Sales of Hospitality segment has gone up 87.66% to Rs 22.82 crore (accounting for 2.77% of total sales).  
  • Profit before interest, tax and other unallocable items (PBIT) has slumped 4.51% to Rs 360.59 crore.  PBIT of Real Estate segment fell 5.88% to Rs 356.13 crore (accounting for 98.76% of total PBIT).  PBIT of Hospitality reported profit of Rs 4.46 crore compared to loss of Rs 0.75 crore.  
  • PBIT margin of Real Estate segment fell from 48.64% to 44.48%.  PBIT margin of Hospitality segment rose from negative 6.17% to 19.54%.  Overall PBIT margin fell from 47.80% to 43.79%.  

Full year results analysis.


Net sales (including other operating income) of Oberoi Realty has increased 31.25% to Rs 2693.97 crore.  Operating profit margin has declined from 48.74% to 43.85%, leading to 18.09% rise in operating profit to Rs 1,181.34 crore.  Employee cost decreased from 2.76% to 2.23%.   Other expenses rose from 41.03% to 59.26%.   Other direct service cost rose from 34.73% to 56.17%.   Other income rose 53.78% to Rs 58.45 crore.  PBIDT rose 19.39% to Rs 1239.79 crore.  Provision for interest rose 13.14% to Rs 86.03 crore. PBDT rose 19.89% to Rs 1153.76 crore.  Provision for depreciation fell 3.42% to Rs 39.78 crore.  Profit before tax grew 20.93% to Rs 1,113.98 crore.  Share of profit/loss was 7,272.31% higher at Rs 239.6 crore.  Provision for tax was expense of Rs 306.48 crore, compared to Rs 185.13 crore.  Effective tax rate was 22.64% compared to 20.03%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 41.64% to Rs 1,047.10 crore.  

  • Sales of Real Estate segment has gone up 29.80% to Rs 2,622.02 crore (accounting for 97.33% of total sales).  Sales of Hospitality segment has gone up 121.18% to Rs 71.95 crore (accounting for 2.67% of total sales).  
  • Profit before interest, tax and other unallocable items (PBIT) has jumped 18.43% to Rs 1,165.29 crore.  PBIT of Real Estate segment rose 16.49% to Rs 1,158.08 crore (accounting for 99.38% of total PBIT).  PBIT of Hospitality reported profit of Rs 7.21 crore compared to loss of Rs 10.16 crore.  
  • PBIT margin of Real Estate segment fell from 49.21% to 44.17%.  PBIT margin of Hospitality segment rose from negative 31.23% to 10.02%.  Overall PBIT margin fell from 47.94% to 43.26%.  

Update on SSA relating to Homexchange

Homexchange Limited (“HX”) is a joint venture of Oberoi Realty Limited (“ORL/ Company”), where ORL currently holds 47.5% stake.  A Share Subscription Agreement dated May 27, 2022 (“SSA”) has been executed between ORL, other existing shareholders of HX, an external institutional investor, and HX, pursuant to which HX shall issue a total of 76,92,308 shares on private placement basis at a price of Rs. 13 per share (face value Rs. 10 each), thus aggregating to Rs. 1000.00 Lakh.   Out of the above, ORL has agreed to subscribe 26,92,308 equity shares at the price of Rs. 13 per share, aggregating to Rs. 350.00 Lakh.   The obligation to subscribe to the abovementioned shares is subject to fulfilment of certain conditions precedent as stated in the SSA on or before August 31, 2022.  

Taking into consideration the shares to be subscribed pursuant to the SSA on private placement basis, ORL will eventually hold 44.03% shares in the post issue paid up share capital of HX on fully diluted basis. 

HX has also introduced an ESOP scheme which will constitute 10% of its post issue capital on fully diluted basis, and the stock options to be granted thereunder, if and when exercised, shall further reduce ORL’s stake in HX to 39.63% on a fully diluted basis. 

Other developments

Equity capital stood at Rs 363.60 crore as of 31 March 2022 to Rs 363.60 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 67.70% as of 31 March 2022 ,compared to 67.70% as of 31 March 2021 .  

 Loan funds rose to Rs 2,855.47 crore as of 31 March 2022 from Rs 1,533.80 crore as of 31 March 2021.  Inventories rose to Rs 5,036.08 crore as of 31 March 2022 from Rs 4,662.61 crore as of 31 March 2021.  Sundry debtors were lower at Rs 124.58 crore as of 31 March 2022 compared to Rs 127.98 crore as of 31 March 2021.  Cash and bank balance rose to Rs 293.15 crore as of 31 March 2022 from Rs 133.08 crore as of 31 March 2021.  Investments rose to Rs 2,679.39 crore as of 31 March 2022 from Rs 1,619.62 crore as of 31 March 2021.  Fixed assets increased to Rs 4,274.66 crore as of 31 March 2022 from Rs 2,991.37 crore as of 31 March 2021.  Intangible assets increased from Rs 2.12 crore to Rs 2.51 crore. 

Cash flow from operating activities increased to Rs 1,068.73 crore for year ended March 2022 from Rs 702.51 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 1,206.33 crore, compared to Rs 1,324.12 crore during the year ended March 2021.  



Management Comments :
Commenting on the Q4FY22 results, Mr Vikas Oberoi, CMD, Oberoi Realty, said “Our Honourable Prime Minister’s proactive economic policies has steered India into a global economic force. The real estate sector has also witnessed a healthy increase in demand over the last two years, and we clearly see this actual user consumption led momentum continuing. We are observing a paradigm shift in consumer behaviour towards an aspirational lifestyle, and a clear preference for larger spaces. We are also witnessing a steady increase in demand for commercial real estate as employees return to their offices.  A strong preference for reputed brands like ours has led to consolidation of the real-estate sector. At Oberoi Realty, we are committed to building resilient ecosystems by adopting more sustainable business practices. Given our robust existing pipeline and proposed launches, we are uniquely placed to create long-term value for all our stakeholders”. 

Oberoi Realty : Consolidated Results
 Quarter endedYear ended
Particulars202203202103Var.(%)202203202103Var.(%)
Net Sales (including other operating income)823.46790.084.222,693.972,052.5831.25
OPM (%)42.7247.27-456 bps43.8548.74-489 bps
OP351.77373.50-5.821,181.341,000.3918.09
Other Inc.19.4810.7980.5458.4538.0153.78
PBIDT371.25384.29-3.391,239.791,038.4019.39
Interest31.6019.7460.0886.0376.0413.14
PBDT339.65364.55-6.831,153.76962.3619.89
Depreciation9.6710.01-3.4039.7841.19-3.42
PBT329.98354.54-6.931113.98921.1720.93
Share of Profit/(Loss) from Associates0.80.32150.00239.63.257,272.31
PBT before EO330.78354.86-6.791353.58924.4246.42
EO Income00-00-
PBT after EO330.78354.86-6.791353.58924.4246.42
Taxation98.4368.0144.73306.48185.1365.55
PAT232.35286.85-19.001047.1739.2941.64
Minority Interest (MI)00-00-
Net profit232.35286.85-19.001047.1739.2941.64
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations232.35286.85-19.001047.1739.2941.64
EPS (Rs)*6.397.89-19.0028.8020.3341.64
* EPS is on current equity of Rs 363.60 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Oberoi Realty : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202203202103Var.(%)% of (Total)202203202103Var.(%)
Sales
Real Estate97.23800.64777.922.9297.332,622.022,020.0529.80
Hospitality2.7722.8212.1687.662.6771.9532.53121.18
Total Reported Sales100.00823.46790.084.22100.002,693.972,052.5831.25
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.00823.46790.084.22100.002,693.972,052.5831.25
PBIT
Real Estate98.76356.13378.39-5.8899.381,158.08994.1316.49
Hospitality1.244.46-0.75LP0.627.21-10.16LP
Total PBIT100.00360.59377.64-4.51100.001,165.29983.9718.43
Less : Interest31.6019.7460.0886.0376.0413.14
Add: Other un-allcoable1.79-3.04LP274.3216.491,563.55
PBIT Margin(%)
Real Estate 44.4848.64-416.06 44.1749.21-504.57
Hospitality 19.54-6.172,571.20 10.02-31.234,125.36
PBT100.00330.78354.86-6.79100.001,353.58924.4246.42
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