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Informist, Monday, Jul. 21, 2025

 

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--Oberoi Realty Apr-Jun consol PAT INR 4.21 bln
--Analysts saw Oberoi Realty Apr-Jun consol net profit at INR 5.61 bln
--Oberoi Realty Apr-Jun consol PAT INR 4.21 bln vs INR 5.85 bln year ago
--Oberoi Realty Apr-Jun consol revenue INR 9.88 bln vs INR 14.05 bln yr ago
--Oberoi Realty to pay INR 2 per share interim dividend for FY26
--Oberoi Realty Apr-Jun consol operating margin 52.59% vs 58% a year ago
--Oberoi Realty Q1 consol real estate revenue INR 9.45 bln vs INR 13.63 bln
--Oberoi Realty Q1 consol hospitality revenue INR 426.4 mln vs INR 420.3 mln

 

By Sunil Raghu

 

AHMEDABAD – Oberoi Realty Ltd.'s June quarter top line and bottom line were in line with the trend expected by the Street, but the year-on-year fall was much more than what analysts had expected. The realty player's overall financial performance was hit by the fall in core revenue and surge in some key costs. Analysts had expected the company to report weak June quarter results, with the bottom line and top line both seen falling due to fewer new launches and a general fall in sales. 

 

The company's consolidated net profit for the reporting quarter fell nearly 28% on year to INR 4.21 billion, failing to meet analysts' expectation of INR 5.61 billion. Its revenue declined nearly 30% on year to INR 9.88 billion, also falling way short of the Street's anticipation of INR 13.52 billion. Sequentially, the bottom line fell 2.8% and the top line was down 14.1%. The real estate developer's other income rose sharply by 135% from a year ago to INR 864 million.

 

The company, in a filing with the stock exchanges Sunday, had said it had got bookings for 181 units during the June quarter for INR 16.39 billion. In the March quarter, the company had booked 78 units at a booking value of INR 8.53 billion.

 

Oberoi Realty's consolidated revenue for the June quarter from its core segment of real estate declined to INR 9.45 billion, from INR 13.63 billion a year ago. On the other hand, its hospitality segment sales increased to INR 426.40 million from INR 420.30 million a year ago.

 

Adding to the pressure on the bottom line and top line was the surge in most of the company's cash outflow figures. Oberoi Realty's spending on land, development rights, construction, and related factors jumped almost 87% from a year ago to INR 6.26 billion. Other heads of expenditure such as finance costs, employee benefit expenses, depreciation and amortisation, and other expenses also saw increases of 22-57% during the June quarter. The consolidated operating margin of the company shrank to 52.69% in the quarter, from 58% a year ago and 53.74% a quarter ago.

 

The company's performance would have been worse if not for an inventory gain of nearly INR 2.36 billion in the June quarter, compared to an inventory cost of INR 1.98 billion a year ago. This saw the company's total expenses for the June quarter fall 14.3% on year to INR 5.74 billion, from INR 6.69 billion a year ago.

 

The realty company released its quarterly results after market hours Monday. Its shares closed almost flat at INR 1,834.60 on the National Stock Exchange. The board has announced an interim dividend of INR 2.00 per share for the financial year 2025-26 (Apr-Mar).

 

The company has said it is banking more on the second half of FY26 for launches. In a conference call with analysts after the March quarter earnings, the management had said it was looking forward to the festival season as it did not fancy having launches during the monsoon. "So, it will be in Diwali and so are other projects. They are all lined up in the second half of this year... We will sequence them out," Vikas Oberoi, chairman and managing director, had said. The company's June quarter post-earnings call with analysts is due 1600 IST Tuesday. Investors are sure to monitor the management's comments on demand, business outlook, and margins.  End

 

Edited by Rajeev Pai

 

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