Oberoi Realty’s net profit in the December quarter saw a surge, annually and sequentially, on higher revenue recognition in its residential segment.
The real estate developer’s consolidated net profit in the third quarter of FY23 rose 50.3 per cent on-year to about ₹703 crore, while revenue from operations was up nearly 96 per cent at ₹1,630 crore. Sequentially and annually the net profit more than doubled.
Operating profit rose 183.6 percent to ₹940.4 crore while the operating margin expanded 1,786 basis points to 57.71 per cent.
A look at the company’s segmental results showed that bulk of its revenues was from its residential segment, which was up over 96 per cent at ₹1,588 crore. The remaining was from its hospitality segment whose revenue at ₹42 crore was up 68 per cent on-year.
While the company did not provide a commentary on the results, analysts said that it was likely that most of the revenue would be from its upscale project ThreeSixtyWest in Worli, Mumbai.
The project got occupancy certificate in the June quarter of last year and since then the demand for apartments at this luxury highrise has surged while the price realisation has doubled.