Results     05-Aug-23
Analysis
Oberoi Realty
NEt down 20% on nearly flat sales
 

Consolidated net sales (including other operating income) of Oberoi Realty for the quarter ended Jun 2023 has declined 0.34% to Rs 909.97 crore.  Operating profit margin has declined from 53.90% to 52.06%, leading to 3.75% decline in operating profit to Rs 473.73 crore.  Employee cost increased from 2.28% to 2.82%.   Other expenses rose from 36.12% to 41.05%.   Other direct service cost rose from 33.03% to 37.17%.   Other income rose 8.71% to Rs 23.59 crore.  PBIDT fell 3.22% to Rs 497.32 crore.  Provision for interest rose 88.74% to Rs 61.53 crore.  PBDT fell 9.45% to Rs 435.79 crore.  Provision for depreciation rose 15.54% to Rs 11.3 crore.  Profit before tax down 9.97% to Rs 424.49 crore.  Share of profit/loss was 96.18% lower at Rs 1.73 crore.  Provision for tax was expense of Rs 104.58 crore, compared to Rs 113.7 crore.  Effective tax rate was 24.54% compared to 22.00%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 20.20% to Rs 321.64 crore.  

  • Sales of Real Estate segment has gone down 0.88% to Rs 870.54 crore (accounting for 95.67% of total sales).  Sales of Hospitality segment has gone up 13.27% to Rs 39.43 crore (accounting for 4.33% of total sales).  
  • Profit before interest, tax and other unallocable items (PBIT) has slumped 3.28% to Rs 468.60 crore.  PBIT of Real Estate segment fell 3.54% to Rs 455.23 crore (accounting for 97.15% of total PBIT).  PBIT of Hospitality segment rose 6.79% to Rs 13.37 crore (accounting for 2.85% of total PBIT).  
  • PBIT margin of Real Estate segment fell from 53.74% to 52.29%.  PBIT margin of Hospitality segment fell from 35.97% to 33.91%.  Overall PBIT margin fell from 53.06% to 51.50%.  

Management Comment

Commenting on the Q1FY24 results, Vikas Oberoi, Chairman and Managing Director, Oberoi Realty said, “Despite international volatility, India’s economy continues to maintain its upward momentum on account of increased demand and infrastructure creation. All verticals in the real estate industry have also been a huge beneficiary of this economic growth, especially the demand for premium housing. On the back of this rising customer demand, coupled with the upcoming festive period, we are confident that the demand for quality housing by reputed brands having a proven track record will continue to sustain. With our calibrated and clear strategy to create long-term value for all our stakeholders, we continue to drive significant value to our portfolio across segments.”

Merger update

As approved by the Board of Directors at its Meeting held on August 9, 2022,   Incline Realty Private Limited (“IRPL” or “Transferor Company 4”) T shall not be part of the Scheme due to commercial reasons.  Hence the revised merger scheme was approved by the BOD on its meeting on July 31, 2023. 

Board of Directors of Oberoi Realty Limited (“Board”) at its board meeting held at Mumbai, today, i.e., July 31, 2023 has approved the Revised Scheme of Amalgamation of Oberoi Constructions Limited (“OCL” or “Transferor Company 1”) and Oberoi Mall Limited (“OML” or “Transferor Company 2”) and Evenstar Hotels Private Limited (“EHPL” or “Transferor Company 3”) with Oberoi Realty Limited (“ORL” or “Transferee Company”) and their respective shareholders, as may be modified from time to time, pursuant to the provisions of Sections 230 to 232 and other applicable sections of the Companies Act, 2013 and other applicable provisions, if any, of the Companies Act, 2013, and subject to the requisite approvals and sanction of the jurisdictional bench of National Company Law Tribunal (“NCLT”) and subject to the approval of shareholders and / or creditors of the Company (if require), Central Government, or such other competent authority as may be directed by the NCLT.


Promoters’ stake was 67.70% as of 30 June 2023 ,compared to 67.70% as of 30 June 2022 .  

 



Oberoi Realty : Consolidated Results
 Quarter endedYear ended
Particulars202306202206Var.(%)202303202203Var.(%)
Net Sales (including other operating income)909.97913.11-0.344,192.582,693.9755.63
OPM (%)52.0653.90-184 bps50.3743.85652 bps
OP473.73492.17-3.752,111.651,181.3478.75
Other Inc.23.5921.708.71100.6258.4572.15
PBIDT497.32513.87-3.222,212.271,239.7978.44
Interest61.5332.6088.74169.0586.0396.50
PBDT435.79481.27-9.452,043.221,153.7677.09
Depreciation11.39.7815.5439.7539.78-0.08
PBT424.49471.49-9.972003.471113.9879.85
Share of Profit/(Loss) from Associates1.7345.29-96.18220.41239.6-8.01
PBT before EO426.22516.78-17.522223.881353.5864.30
EO Income00-00-
PBT after EO426.22516.78-17.522223.881353.5864.30
Taxation104.58113.7-8.02319.34306.484.20
PAT321.64403.08-20.201904.541047.181.89
Minority Interest (MI)00-00-
Net profit321.64403.08-20.201904.541047.181.89
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations321.64403.08-20.201904.541047.181.89
EPS (Rs)*8.8511.09-20.2052.3828.8081.89
* 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)202306202206Var.(%)% of (Total)202303202203Var.(%)
Sales
Real Estate95.67870.54878.30-0.8896.264,035.702,622.0253.92
Hospitality4.3339.4334.8113.273.74156.8871.95118.04
Total Reported Sales100.00909.97913.11-0.34100.004,192.582,693.9755.63
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.00909.97913.11-0.34100.004,192.582,693.9755.63
PBIT
Real Estate97.15455.23471.96-3.5497.302,038.301,158.0876.01
Hospitality2.8513.3712.526.792.7056.627.21685.30
Total PBIT100.00468.60484.48-3.28100.002,094.921,165.2979.78
Less : Interest61.5332.6088.74169.0586.0396.50
Add: Other un-allcoable19.1519.61-2.35298.01274.328.64
PBIT Margin(%)
Real Estate 52.2953.74-144.28 50.5144.17633.93
Hospitality 33.9135.97-205.85 36.0910.022,607.04
PBT100.00426.22471.49-9.60100.002,223.881,353.5864.30
Previous News
  Oberoi Realty consolidated net profit rises 19.52% in the September 2022 quarter
 ( Results - Announcements 15-Oct-22   08:10 )
  Oberoi Realty consolidated net profit declines 0.24% in the September 2020 quarter
 ( Results - Announcements 17-Oct-20   17:45 )
  Oberoi Realty hits record high after launching luxury residential project in Thane
 ( Hot Pursuit - 21-Nov-23   15:37 )
  Oberoi Realty Q4 PAT more than doubes to Rs 480 crore
 ( Hot Pursuit - 17-May-23   11:31 )
  Oberoi Realty slides after Q1 PAT drops 20% YoY
 ( Hot Pursuit - 01-Aug-23   11:25 )
  Board of Oberoi Realty recommends second interim dividend
 ( Corporate News - 23-Jan-24   12:54 )
  Nifty below 18,200; realty shares tumble
 ( Market Commentary - Mid-Session 17-May-23   12:36 )
  Oberoi Realty consolidated net profit declines 15.82% in the June 2017 quarter
 ( Results - Announcements 29-Jul-17   17:36 )
  Oberoi Realty to announce Quarterly Result
 ( Corporate News - 23-Jul-21   10:48 )
  Oberoi Realty Ltd Spikes 4.62%, S&P BSE Realty Index index Rises 1.66%
 ( Hot Pursuit - 25-Jan-21   09:30 )
  Oberoi Realty Q2 PAT flat at Rs 137 cr
 ( Hot Pursuit - 19-Oct-20   11:39 )
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