- 21 Oct 2024
- ICICI Securities
OBEROI REALTY: STRONG PRESALES DRIVEN BY WORLI
News: Oberoi Realty (ORL) sold 158 units worth ₹ 1442 crore in Q2FY25 vs ₹ 965 crore in Q2FY24. We highlight that presales growth, despite no new launches, is mainly due to healthy sales of Worli – 6 units worth ₹ 663 crore sold during the quarter. On the financial front, reported revenues were up 8.4% YoY at ₹ 1405 crore, growth largely driven by higher rentals from its new commercial tower Commerz 3. Margin at 61.7%, was up 8.7 percentage points YoY, was aided by revenue mix (higher proportion of high margin Goregaon/Worli Projects as well as rentals in the mix). PAT at ₹ 589 crore was up 45% YoY, driven by strong revenue and operating profit growth.
Views: ORL’s key growth trigger ahead hinges on a) how the new launches especially Thane Pokhran Road project shape up and b) its expansion beyond MMR market (launch of Gurugram project). We understand that pricing of Thane Project is attractive and should see good traction ahead. We seek clarity on the residential launch ahead and overall demand outlook coupled with status of rental and the hospitality segment from the management.
Impact: Positive