Oberoi Realty Ltd’s shares fell 1.18 per cent as it reported a 20 per cent decrease in profit for the quarter ended June 30, 2023, at Rs 321.64 crore, compared to Rs 403.08 crore during the corresponding quarter last year.
The company’s revenue fell by 0.3 per cent to Rs 909.97 crore, compared to Rs 913.11 crore last year. Sequentially, the company’s profits were lower by 33 per cent compared to Rs 480.29 crore in the previous quarter.
According to a report by ICICI securities, “Oberoi Realty (OBER) reported muted Q1FY24 sales bookings of INR4.8bn with nil sales in 360 West, Worli and no new launches during the quarter. However, the balance of FY24E is all set to see heavy launches with both Thane launches (Pokhran and Kolshet) set to be finally launched, along with a new tower at Elysian, Goregaon and completed Worli/ Mulund/ Borivali inventory. Hence, we expect OBER to clock at least INR60bn of sales bookings each in FY24E and FY25E. Further, we expect company’s rental income to rise to INR11.3bn in FY25E from INR2.9bn in FY23 as Commerz III/Borivali malls rentals commence rentals from H1FY25E. Key risks are decline in demand for residential housing and weak office leasing.”