Company Update : Oberoi Realty Ltd By Motilal Oswal Financial Services Ltd
Jardin-OGC, Thane launch drives pre-sales
Strong leasing momentum
Operational performance
* The company achieved pre-sales of INR19.2b, up 144% YoY (13% lower than the estimate).
* 70% of the sales were driven by the new launch of Project Jardin, where OBER sold 466 units valued at INR13.3b, whereas bookings across other projects were weak.
* The company successfully concluded the transaction through NCLT for the acquisition of Mulund Asset.
* The company entered into a joint development agreement for ~81.05 acres in Alibaug.
* Leasing segment: Following the Commerz-3 augmentation in 1QFY25, occupancy inched up to 77% from 65%, resulting in revenue growth of 19% QoQ to INR1.1b. This brought the total office revenue to INR1.6b (+15% QoQ), leading to an increased EBITDA margin of 90%.
* Commerz-1 occupancy rose 96% (vs. 84% in 2QFY25). However, revenue growth was only 7% YoY at INR122m. Commerz-2 occupancy also increased to 97% with revenue of INR356m.
* Oberoi Mall continued to deliver healthy performance with a 12% YoY increase in revenue to INR496m. EBITDA from the annuity portfolio stood at INR1.9b, with a blended margin of 91% (unchanged as of 2QFY25).
* In 3QFY25, The Westin hotel witnessed a similar YoY growth of 9% in revenue to INR537m, aided by a 24% increase in ARR of INR16396. However, the occupancy reduced to 79%. EBITDA came in at INR226m with a margin of 42%.
Cash flow performance
* Collections increased 56% YoY to INR13.9b.
* Net debt during the quarter was at 0.01x (vs. 0.02x in 2QFY25). The company raised INR15b via Non-Convertible Debentures.
P&L highlights
* Revenue increased 34% YoY to INR14.1b (4% below estimate). Further, the company reported EBITDA of INR8.6b, up 68% YoY, as the margin expanded 12pps YoY to 61%. The margin expansion was led by higher revenue recognition from Enigma and Three Sixty West.
* Consequently, PAT increased 72% YoY to INR6.2b.
* The company declared its 3rd interim dividend for FY24-25 at the rate of INR2/share, i.e. 20% of the face value of equity shares of INR10/share.
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