- 17 Oct 2022
- ICICIdirect Research
Oberoi Realty reports healthy sales valueOBEROIRLTY - 827 Change: 8.55 (1.04 %)
Oberoi Realty (ORL) reported strong sales value on YoY/QoQ basis aided by some traction at Worli Project. The sales value stood at Rs 1156 crore, up ~39% YoY and 52% QoQ, largely led by Worli Project (sold 8 units worth Rs 610 crore). We highlight that pricing of Worli 83181/sq feet has also shown ~63% increase than the last sale (recorded in FY21). On the financial front, Reported revenues were down 8.7% YoY at Rs 688.6 crore (our estimate: Rs 944 crore). The miss was owing to lower residential segment revenue recognition which stood at Rs 556.3 crore, down 17% YoY. The reported PAT was at Rs 318.6 crore, up 19.5% YoY, given higher profit from share of JV (Worli Project).
The key positive is some traction in Worli Project after two years and that too at an elevated realisations. ORL’s key growth trigger ahead hinges on how the new launches especially Thane shape up and its expansion beyond MMR market. We seek clarity on the residential launches (especially Thane) and overall demand outlook coupled with status of rental and the hospitality segment from the management.