Oberoi Realty (OBEROIRLTY) Q4 12/13 earnings summary

Executive summary

• FY2013 consolidated revenue rose 17.72% to ₹1,14,752 lakh; profit after tax increased 9.06% to ₹50,478.60 lakh.

• Despite slower Mumbai property absorption and subdued sector pricing, sales were achieved at higher realisations; average realisations strengthened by more than 25%.

Financial highlights

• Consolidated revenue from operations increased 27.03% to ₹1,04,757.65 lakh; total revenue grew 17.72% to ₹1,14,752 lakh.

• Consolidated EBITDA was ₹71,200.33 lakh versus ₹63,358.83 lakh; PBT rose 12.73% to ₹68,306.18 lakh and PAT rose 9.06% to ₹50,478.60 lakh.

• Consolidated basic and diluted EPS was ₹15.38, up from ₹14.10; standalone revenue rose 34.94% to ₹74,249.50 lakh and standalone PAT rose 28.45% to ₹32,747.23 lakh.

• Project revenue increased 35.44% to ₹78,128.67 lakh; rent and related revenue grew 8.47% to ₹13,983.27 lakh, while hospitality revenue rose 6.53% to ₹9,559.32 lakh.

Outlook and guidance

• FY2014 expected to remain challenging; economists forecast Indian GDP growth of 5.0–5.5%, with inflation, fiscal and current-account deficits and election uncertainty weighing on conditions.

• Priorities include steady operations, high-quality project delivery, opportunities in and around Mumbai, case-by-case expansion to nearby hubs and land scouting in NCR and other metros.

• Plans include deepening relationships with architects, designers and contractors, expanding the vendor base, and implementing financial consolidation and planning/budgeting tools.