Earnings Outlook
Lack of launches to drag Oberoi Realty Jul-Sept earnings
This story was originally published at 20:42 IST on 17 October 2024
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By Gopika Balasubramanium
MUMBAI – Oberoi Realty Ltd. is expected to report weak growth in earnings for Jul-Sept as the company did not launch any new projects during this quarter, analysts said. The revenue for this quarter was mainly from sales of inventory from existing projects.
The company is expected to report a consolidated net profit of INR 4.82 billion for the latest quarter, up 5.5% on year, an average of the estimates from six brokerages showed. Sequentially, the net profit is expected to fall 17.6% from INR 5.85 billion in Apr-Jun.
The company is expected to report consolidated revenue of INR 12 billion for the September quarter, down 1.4% on year, according to the estimates. The company had reported consolidated revenue of INR 12.17 billion for the same period in the last financial year. Sequentially, the consolidated revenue is seen down 14.6% from INR 14.05 billion in the last quarter.
Among the six brokerages, HDFC Securities has projected the highest net profit for Oberoi Realty at INR 6.44 billion and Elara Securities has estimated the lowest at INR 3.48 billion. The estimates for consolidated revenue range from INR 15.07 billion by HDFC Securities to INR 8.89 billion by Elara Securities.
Kotak Institutional Equities said it expects revenue of INR 12.5 billion from the residential real estate business and revenue of INR 2.3 billion from the hotel and commercial segments. The commissioning of Commerz III, a commercial property of the company which rents out office spaces, had contributed revenue of INR 658.1 million in the previous quarter.
Elara Securities said pre-sales and new launches are expected to pick up during the second half of 2024-25 (Apr-Mar). The pre-sales are expected to decline 9% on year for the latest quarter due to muted project launches.
Motilal Oswal Financial Services, which has a 'neutral' rating on the stock, said steady traction across all projects will result in sales bookings rising to INR 8 billion, down 17% on year. Nuvama Institutional Securities said bookings at the company's real estate properties at Thane and Worli in Mumbai need to be monitored.
Oberoi Realty currently owns a residential property 'Forestville' at Thane, which had added INR 119.40 million in revenues for the June quarter. Broking firm Sharekhan Ltd. said it expects the company to report healthy sales booking aided by its residential property, Three Sixty West in Worli, Mumbai. This property had a revenue of INR 4.75 billion for the previous quarter, the highest of all its residential projects.
Oberoi Realty's earnings before interest, tax, depreciation, and amortisation is estimated to be INR 6.56 billion, down 1.3% on year, the median of the five brokerage estimates showed. Sequentially, the company's EBITDA is seen down 19.5% on year from INR 8.15 billion. The company had reported an EBITDA of INR 6.65 billion for the same quarter a year ago.
The company is scheduled to report its September quarter earnings on Friday. On Thursday, shares of the company closed at INR 1,903.70 on the National Stock Exchange, down 6.3% from the previous close.
Following are the Jul-Sept earnings estimates for Oberoi Realty based on reports compiled by Informist from six brokerage firms:
Brokerage firm | Net Sales (in INR million) | Net Profit (in INR million) | EBITDA (in INR million) |
Elara Securities (India) Pvt. Ltd. | 8,886.00 | 3,479.00 | 4,887.00 |
Kotak Institutional Equities | 14,938.00 | 5,500.00 | 7,988.00 |
Motilal Oswal Financial Services Ltd. | 10,424.00 | 4,174.00 | 5,929.00 |
Nuvama Wealth Management Ltd. | 9,215.00 | 4,181.00 | 5,034.00 |
HDFC Securities Ltd. | 15,457.00 | 6,440.00 | 8,974.00 |
Sharekhan Ltd. | 13,070.00 | 5,140.00 | - |
Average | 11,998.33 | 4,819.00 | 6,562.40 |
End
Edited by Ashish Shirke
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