Oberoi Realty’s series of projects reached revenue milestones in the third quarter, which helped its revenue performance
Mumbai-focused Oberoi Realty Ltd’s December quarter earnings were flat.
In terms of volume, pre-sales or reservations fell 65% year-over-year and 3% quarter-over-quarter to 360,000 square feet. In value terms, bookings fell 68% year-on-year and 45% quarter-on-quarter to 630 crore rupees.
Presales were negatively impacted as its Elysian, Goregaon projects booked just one unit against 141 in the Q3FY22 launch quarter, and Three Sixty West, an ultra-luxury project in Worli, recorded no reservation versus 141 in the launch quarter in Q3FY23. Eight for the second quarter, analysts said Motilal took note of Oswal Financial Services
On the positive side, many of the company’s projects reached revenue milestones in the third quarter, which helped its revenue performance. Additionally, Oberoi has reached the settlement with joint venture partner for the Wally 360 West project and now owns all inventory available for sale.
Still, a timely release remains a key trigger for the stock and the overall earnings outlook.
On the earnings call, management reiterated its intention to launch the Thane project in FY24. Its larger Pokhran Road-Thane project is expected to start in early FY24, while the smaller Thane-Kolshet project will start in mid-March (Q4).
“The Thane projects should provide Oberoi with an entry into a new geography/ticket size, and we expect the location to contribute around 20-25% of FY24 sales,” said analysts at Jefferies India Pvt Ltd.
In addition, its new tower in Goregaon is expected to be launched during the FY24 holiday season. In order to reduce its dependence on the Mumbai metropolitan area, the company is also looking to expand into the National Capital Region.
