Oberoi Realty (ORL) result was a weak as it reported weak sales performance
Q4FY23 Earnings Summary
The reported sales value at | 6023 crore, included the transaction of value of units which ORL bought from partners at Worli. Therefore, actual sales value was weak at | 673 crore, down 27.2% YoY, given the lack of new launches In terms of overall sales volume, the company managed to sell 1.6 lakh sq ft area during Q4FY23, down ~69% YoY.
On the financial front, reported revenues were up ~16.8% YoY at | 961 crore (our estimate: | 1118 crore). The miss was owing to lower residential segment revenue recognition which stood at | 805 crore, up ~22.7% YoY. The hospitality remained robust with revenues of | 45.9 crore, up ~103% YoY. The rental revenues (from mall and office assets) stood at | 92.3 crore
The EBITDA at | 368.7 crore, was up 4.8% YoY. Reported EBITDA margins, were down 437 bps YoY to 38.3% (our estimates 48%) due to project mix
The reported PAT was at | 480.3 crore, up 106.7% YoY, given the deferred tax asset of | 180.3 crore during the quarter. Adjusted PAT at ~| 300 crore, was lower than estimates of | 373 crore, given the weaker than expected operating show
ICICIdirect Research view on Oberoi Realty Ltd Stock
View: 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 which continues to pushed back) and overall demand outlook coupled with status of rental and the hospitality segment from the management. We will review our estimates and come out with a detailed report post the conference call.
Impact: Negative
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