Oberoi Realty (OBEROIRLTY) Q4 10/11 earnings summary

Executive summary

• FY11 consolidated total income rose 31% YoY to Rs. 105,877.56 lakh; PAT increased 13% to Rs. 51,718.23 lakh.

• FY11 brought the October 2010 stock-market listing, two residential launches and the opening of the first hotel; residential sales were buoyant.

• Strategy centers on premium mixed-use destinations, Mumbai-focused growth and a balance of sale projects and rent-generating assets.

Financial highlights

• Consolidated operating income was Rs. 98,432.80 lakh; other income was Rs. 6,273.42 lakh, primarily treasury income on surplus funds.

• Consolidated EBITDA was Rs. 63,977.02 lakh, with a 60.43% margin; PBT was Rs. 61,546.88 lakh and PAT Rs. 51,718.23 lakh.

• Standalone total income reached Rs. 43,952.13 lakh; PAT was Rs. 17,056.56 lakh and EPS Rs. 5.59.

• Consolidated operating cash flow was Rs. 20,034.23 lakh versus Rs. 52,281.88 lakh in FY10; closing cash and cash equivalents were Rs. 139,930.85 lakh.

Outlook and guidance

• FY12 expected to challenge the real estate sector; priorities include delivery quality, stronger processes and controls, and continued focus on destination developments.

• Mumbai Metropolitan Region remains the primary market; opportunities elsewhere in India to be assessed selectively.

• Management expected Oberoi Mall revenue to improve in FY12 and anticipated stronger hotel performance after its first operating year.

• Planned to balance sale properties with owned, leased assets to support steady cash flow and manage real estate cyclicality.