Oberoi Realty (OBEROIRLTY) Q4 16/17 earnings summary

Executive summary

• FY2016-17 gross annual booking value exceeded ₹1,500 crore; ongoing projects progressed steadily, with timely delivery a stated priority.

• Consolidated revenue and profit declined YoY as project sales volume fell; rental, retail and hospitality operations provided recurring income.

Financial highlights

• Consolidated revenue ₹1,16,104.19 lakh, down 20.42% YoY; PBT ₹56,229.69 lakh, down 15.22%; PAT ₹37,858.76 lakh, down 13.08%.

• Consolidated EPS ₹11.15, down from ₹12.96 YoY; total comprehensive income ₹37,881.24 lakh, down 12.97%.

• Revenue from operations ₹1,11,374.39 lakh; operating costs fell 30.57% YoY to ₹43,719.49 lakh, while total expenses declined 24.75% to ₹59,874.50 lakh.

• Standalone revenue ₹94,908.21 lakh, down 29.65% YoY; PBT ₹47,613.21 lakh, down 30.05%; PAT ₹32,064.97 lakh, down from ₹49,758.24 lakh.

Outlook and guidance

• Strategy prioritizes project execution and delivery, quality construction, value enhancement and portfolio expansion into diverse businesses.

• Development opportunities to be explored around Mumbai and nearby hubs; land parcels in NCR and Bangalore were being actively sourced on a case-by-case basis.

• Management expected sector transparency and professionalism to improve under RERA, GST, REIT and other reforms; lower long-term interest rates were seen as supportive of demand.