- 18 Jul 2022
- ICICIdirect Research
Oberoi Realty posts weak sequential volumes; strong financial performanceOBEROIRLTY - 856 Change: -6.40 (-0.74 %)
News: Oberoi sold 4.01 lakh sq ft area during Q1FY23, up 3.6x YoY (with total booking value of Rs 752 crore). On a QoQ basis, sales volume has declined by 23% with Worli project volumes not taking off and sequential softness in Borivali/Mulund volumes. On the financial front, Reported revenues grew by 221.2% YoY (up 10.9% QoQ) to Rs 913.1 crore led by residential segment revenue recognition which stood at Rs 772.5 crore, up 265.5% YoY (up 17.8% QoQ). The reported PAT was at Rs 403.1 crore, up 400% YoY, given strong operating profit growth and higher profit from share of JV.
Views: The residential segment sales volumes saw a sequential decline while key project of Worli continues to be sluggish in terms of volume offtake. We seek further clarity on the further residential launches (especially Thane) and overall demand outlook coupled with status of rental and the hospitality segment.