Oberoi Realty (OBEROIRLTY) Q4 13/14 earnings summary

Executive summary

• FY2014 consolidated revenue and profit declined amid subdued markets, while land acquisitions and legal clearance added nearly 4.5 mn sq. ft. to the development pipeline.

• Growth priorities included launching Mulund in FY2015, developing Borivali, and advancing the Worli mixed-use project with The Ritz-Carlton.

Financial highlights

• Consolidated total revenue fell 25.45% YoY to ₹85,551.48 lakh; PBT declined 32.02% to ₹46,437.71 lakh and PAT fell 38.38% to ₹31,106.23 lakh.

• Consolidated EBITDA was ₹49,183.81 lakh versus ₹71,200.33 lakh; basic and diluted EPS declined 38.38% to ₹9.48.

• Standalone total revenue decreased 4.93% to ₹70,585.58 lakh; PBT fell 7.41% to ₹41,074.95 lakh and PAT declined 9.88% to ₹29,512.41 lakh.

• Revenue from projects fell 38.52% to ₹48,036.62 lakh; hospitality revenue rose 16.96% to ₹11,180.14 lakh and rental revenue increased 15.68% to ₹16,175.85 lakh.

Outlook and guidance

• FY2015 expected to remain challenging amid fiscal adjustment, inflation and current-account risks; economists forecast Indian GDP growth of 5.0–6.0%.

• Priorities included maintaining steady operations, delivering quality projects, exploring Mumbai-area opportunities and scouting land in NCR and Bangalore.

• Mulund development, with potential exceeding 3 mn sq. ft., was expected to launch in FY2015.