Oberoi Realty (OBEROIRLTY) Q1 24/25 earnings summary

Executive summary

• Q1FY25 revenue from operations rose to ₹140,516 lakh, up 54% year-over-year, with net profit at ₹58,451 lakh, an 82% increase, and strong profitability and sales traction at 360 West and other key projects.

• Operating margin improved to 58.00% in Q1FY25 from 52.06% in Q1FY24, with residential segment leading revenue growth and robust leasing momentum across office assets.

• Entered a development agreement for a new land parcel at Adarsh Nagar, Worli, and completed conveyance and registration of Gurgaon property.

• Interim and final dividends of ₹2 per share each declared and paid in FY25, and amalgamation of three wholly owned subsidiaries completed.

• Pokhran Road project execution commenced with L&T as contractor, and launches in Thane, Goregaon, Borivali, and other locations planned for the festive season.

Financial highlights

• Total income for Q1FY25 was ₹144,195 lakh, up from ₹93,356 lakh in Q1FY24, with EBITDA margin at 58.00% and net profit margin at 40.54%.

• Diluted EPS for Q1FY25 stood at ₹16.08, compared to ₹8.85 in Q1FY24; cash and bank balances at Q1FY25 end were ₹138,208 lakh.

• Gross debt to equity reduced to 0.15 in Q1FY25 from 0.30 in Q1FY24; net debt to equity dropped to 0.06 from 0.22 year-over-year.

• 360 West recorded INR 475 crore in sales, with INR 120 crore collected; Commerz I nearly fully leased, Commerz II at 93% occupancy, and Commerz III at about 70% leased.

• Sky City Mall expected to be 80%-90% leased within the year, with strong tenant interest and high-quality lessees.

Outlook and guidance

• Management notes that quarterly results may not be representative of annual performance due to project-based business and cyclical nature of real estate.

• Expectation of continued strong sales at 360 West and higher sales run rates at Mulund and Borivali post-occupation certificate.

• Focus on launching towers in Goregaon, Borivali, Pokhran Road, and additional launches in Tardeo and Pedder Road by year-end or early next year.

• Continues to monitor local and global economic factors for potential impacts on liquidity and project completion.