Oberoi Realty Q4 results preview: Margins to climb 10.7% on year led by cost control, price hike

Oberoi Realty, part of the Nifty Realty index, is slated to announce its March-quarter results on Tuesday (May 14, 2024). Zee Business research desk estimates the  company to stage a decent show for the reporting period. 

The Mumbai-based realty developer's consolidated revenue for the March quarter is seen to climb 50.8 per cent year-on-year (YoY) to Rs 1,450 crore versus Rs 961.4 crore in the same period last year. EBITDA or earnings before interest, taxes, depreciation, and amortization, a metric of the company's overall financial performance, is expected at Rs 710 crore, a sharp rise of 92.6 per cent on-year, when compared to Rs 368.7 crore in Q4FY23.

Furthermore, margins at the realty major are also projected to get a boost in the January-March quarter and come in at 49 per cent given the cost control initiatives and price increase in the realty sector. In the corresponding period last year, the company’s margin was reported at 38.3 per cent.

Meanwhile, consolidated profit is likely to come in at Rs 500 crore, a 4.1 per cent growth over the same period last year’s profit of Rs 480.3 crore.

Additionally, the desk believes that amid new launches, Oberoi Realty is likely to log an increase in pre-sales during the reporting quarter. Also, investment property is seen to register strong growth.

Oberoi Realty’s fundraising plans

Besides, approving the financial results for FY24, the company also plans to raise funds. The board shall also consider and pass enabling resolution/s for fund raising by various modes, including by issue of (a) non-convertible debentures, or any other securities, and (b) equity shares and/ or any other securities convertible into equity, both subject to shareholders approval (wherever required), added the company’s filing.

Oberoi Realty’s Q4 business update

For Q4, the company reported booking value of Rs 1,775 crore as against Rs 6,023 crore in the same period last fiscal. The previous year’s figure includes Oasis Realty sale amounting to Rs 3,403 crore. Further, in terms of units, 228 units were booked during the period as against 207 units in the same period last fiscal, while in volume terms, the realty major booked 4.48 lakh square foot.

Oberoi Realty share price performance 

Over the past year, the stock of Oberoi Realty has yielded a return of 57.5 per cent, sharply underperforming Nifty Realty that has given a multibagger return of 107 per cent. Ahead of its results tomorrow, shares of the company traded higher by nearly 1 per cent at Rs 1485.25 per share.