Oberoi Realty Q3- Strong Launch Pipeline Ahead; Business Development Activity Set To Accelerate: Dolat Capital

Dolat Capital Report

All round contribution to profit and loss from different segments translated into a return on equity of 25% /19% (annualized) for the quarter/nine months-FY23 respectively; reflecting the true underlying profitability of Oberoi Realty Ltd.’s operating assets. The higher revenues recognition in the residential segment (Mulund projects) aided the ROE print. Notably residential Ebitda margin came-in at 56.4%.

Presales (excluding 360 west) increased 15% QoQ aided by new tower launch in Borivali. The management remains confident of launching Thane (Kolshet) by mid- March and Pokhran in Q1 FY24.

Oberoi Realty plans on accelerating business development activity with proceeds from late cycle projects (Mulund / 360 west).

We estimate net proceeds from these projects at ~Rs 80 billion. In this regard, the developer acquired 8.5 acre land parcel in Pokhran (Thane) for Rs 1.9 billion consolidating its existing land bank in Thane. Also, the management confirmed signing a memorandum of understanding for acquiring a land parcel in Gurgaon.

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